Indian seamless pipe prices soften due to sluggish demand

Friday, 12 April 2013 14:55:21 (GMT+3)   |  

As predicted a month ago, Indian seamless pipe quotations in India have moved down in the past month taking into account the low activity of local buyers at the start of India's new fiscal year and the poor demand from overseas customers. Indian seamless pipe producers have decreased their domestic offers by around INR 1,000-3,000/mt ($18-55/mt) over the past month, while export quotations of Indian seamless pipes have gone down by $10-50/mt over the period under review. However, Indian customers express little interest in purchasing material due to the still low pace of business recovery in consuming industries, while foreign buyers are in no hurry to step up their purchases as they expect another price fall.

Market participants think that quotations of Indian seamless pipes are unlikely to change much in the near term considering slow seamless pipe demand growth in the key market outlets.

Most offers of Indian seamless pipes of 1"-10" grade B made to ASTM A106 are being given to the local market at around INR 62,000-65,000/mt ($1,143-1,199/mt) ex-works on theoretical weight basis, excluding tax.

Domestic quotations of 2"-4" seamless pipes of grade B made to ASTM A106 from top Indian pipe producers are at levels of INR 67,000-73,000/mt ($1,235-1,346/mt) ex-works, excluding tax.

The majority of export offers of Indian seamless pipes of 1"-6" Sch 40 grade B as per ASTM A106 are standing at around $1,200-1,250/mt FOB on theoretical weight basis. Meanwhile, export quotations of the same pipes, 2"-4", from top Indian pipe producers are at levels of $1,300-1,400/mt FOB.

$1 = INR 54.23


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