The Indian welded pipe market has not recovered as expected after the Diwali festival, with trading activity remaining scarce over the past two weeks. The lack of firm support from production costs and from downstream demand as well as lower import offers of Chinese material have forced Indian mills to reduce their welded pipe prices for both local and overseas buyers. Indian domestic welded pipe prices have fallen by around INR 1,000/mt ($17/mt) over the past month, while export offers of Indian pipes have declined by $5-10/mt over the same period. Market players lack confidence in the prospects for the market in the coming period and deem that the market is unlikely to improve in the short run.
Domestic quotations of 1"-6" black ERW pipes made to IS 1239 or BS 1387 (light series) from Indian producers are at levels of INR 40,000-41,000/mt ($649-665/mt) ex-works, excluding tax, on actual weight basis. Current domestic prices of 1"-6" galvanized ERW pipes made to BS 1387 (light series) are in the range of INR 46,000-47,000/mt ($746-762/mt) ex-works.
Most Indian producers are offering 1"-6" black ERW pipes as per BS 1387 (light series) to foreign customers at around $670-690/mt FOB on actual weight basis. Export prices of galvanized ERW pipes of 1"-6" size made to BS 1387 from most Indian producers are at around $770-790/mt FOB.
$1 = INR 61.66