Demand for seamless pipes in the Indian domestic market remains steady and has enabled producers to keep quotations in the national currency within a stable price range. Yet, prices in US dollar terms have risen by $20/mt over the past month on the back of the increased strength of the rupee. Export offers of Indian seamless pipes have increased by $10-30/mt over the analyzed period due to currency fluctuations. Market participants have also noted that the prices for Chinese pipes to the Indian market have risen by $20/mt over the past month.
Domestic quotations of locally produced seamless pipes 3"-10" grade B made to ASTM A106 are at around INR 47,000-50,000/mt ($1,030-1,090/mt) ex-works on theoretical weight basis, excluding tax. However, as SteelOrbis has learned, mills' quotations for end-users may go down to INR 44,000-45,000/mt ($960-985/mt) ex-works.
Export offers of seamless pipes 3"-10" grade B as per ASTM A106 from Indian manufacturers are being given at around $980-1,030/mt FOB theoretical weight basis.
Import pipes are represented mainly by Chinese products. Their prices are at $730-760/mt C&F actual weight for 2"-6" sizes, grade B, as per ASTM A106/API 5L.
Indian market players foresee a further hike in seamless pipe prices. They report that current billet prices are at around INR 30,000-32,000/mt ($650-700/mt) ex-works and are continuing to rise. This leads to an increase in the cost of seamless pipe production. Another factor supporting price increases by Indian seamless pipe manufacturers is constituted by the rising import quotations for Chinese material. India's demand for seamless pipes is growing, with demand from the infrastructure and auto segments prompting much of the growth. Prices are likely to surge further, as manufacturers have begun to build inventories in anticipation of competitive prices once demand picks up.