Over the past month domestic prices of Indian seamless pipes in the national currency have stayed at previous levels, reflecting the relatively stable quotations of raw materials; however, because of currency fluctuations, prices in dollar terms have dropped in the same period by $15-20/mt. Export offers of Indian seamless pipes have declined by $10-60/mt due to the strengthening of the Indian rupee and weak demand from foreign customers. Market participants have also noted that the prices of Chinese pipes for the Indian market have dropped by $20/mt over the analyzed period. Indian pipe makers expect strong performances by consuming segments like automotive, construction, infrastructure and capital goods, and steel consumption is expected to increase by more than 10 percent in the current fiscal year. In particular, Indian automotive exports may rise by 15 percent in this fiscal year as demand from Europe, which is a major destination for the Indian auto industry's passenger car exports, is expected to rise. Rising steel consumption in India will drive demand and prices for seamless pipes.
Domestic quotations of locally produced seamless pipes 2"-4" grade B made to ASTM A106 are at around INR 62,000-67,000/mt ($1,320-1,420/mt) ex-works on theoretical weight basis, excluding tax.
Export offers of seamless pipes 2"-4" grade B as per ASTM A106 from top Indian manufacturers are being given at around $1,400-1,450/mt FOB on theoretical weight basis.
Prices for Chinese seamless pipes 2"-6" grade B as per ASTM A106/API 5L given to India are at $800-850/mt C&F actual weight.