The last two weeks did not bring any significant changes to the demand situation in the Indian welded pipe market. Demand from local consumers is still weak due to the slowdown in the construction sector and due to the monsoon season. In addition, suppliers do not have the opportunity to compensate for negative business conditions in the domestic market by means of exports. Domestic quotations of Indian ERW pipes have decreased by INR 500-1,000/mt ($5-10/mt) over the past two weeks, while export prices have remained at previous levels. Negative expectations prevail in the Indian welded pipe market. Welded pipe prices will continue to weaken in line with the softening in flats offers and the stagnancy on the demand side.
Domestic quotations of 2"-6" black ERW pipes made to IS 1239 or BS 1387 (light series) are at levels of INR 35,000-37,500/mt ($760-810/mt) ex-works, excluding tax and on actual weight basis, while ½"-1 ½" black ERW pipes are at about INR 37,000-38,500/mt ($800-830/mt) ex-works. ERW pipes of 4"-6" made to API 5L grade B are quoted in the domestic market at INR 39,000-40,000/mt ($845-865/mt) ex-works. Current domestic prices of 1"-6" galvanized ERW pipes made to BS 1387 (light series) are in the range of INR 41,000-43,000/mt ($890-930/mt) ex-works.
Export quotations of ½"-4" black ERW pipes as per BS 1387 or IS 1239 from top Indian producers, like Jindal Pipes, are at the level $840-890/mt FOB. Export prices of Indian 4"-6" black ERW pipes of grade B according to API 5L are at around $910-920/mt FOB. At the same time, some pipe makers in India are offering 1"-6" black ERW pipes made to BS 1387 at $770-800/mt FOB on an actual weight basis. Export prices of Indian galvanized ERW pipes of 1"-6" size made to BS 1387 are at around $870-900/mt FOB.