Indian welded pipe producers have raised their prices against a background of higher feedstock costs and somewhat better demand from US and EU buyers. Over the past two weeks, domestic quotations of Indian black welded pipes have gone up by INR 1,000/mt ($12-13/mt), while export offers of Indian pipes have increased by $30-40/mt over the same period. However, buying activity in the domestic market is still low due to slow demand from consuming industries.
Most market participants agree that Indian pipe producers may continue to make upward adjustments over the next few weeks on the back of expected higher local HRC prices and more expensive Chinese welded pipes after the Chinese New Year holiday. Meanwhile, domestic and foreign purchasing activity is expected to remain stable in the near term.
Domestic quotations of 1/2"-6" black ERW pipes made to IS 1239 or BS 1387 (light series) from Indian producers are at levels of INR 40,000-42,000/mt ($742-780/mt) ex-works, excluding tax. ERW pipes of 4"-6" made to API 5 L grades B are quoted in the domestic market at INR 43,000-44,000/mt ($798-817/mt) ex-works. Current domestic prices of 1"-6" galvanized ERW pipes made to BS 1387 (light series) are in the range of INR 45,000-47,000/mt ($835-872/mt) ex-works.
Most Indian producers are offering 1"-6" black ERW pipes as per BS 1387 (light series) to foreign customers at around $740-760/mt FOB on theoretical weight basis. At the same time, export quotations of 1"-4" black ERW pipes as per BS 1387 or IS 1239 from top Indian producers such as Jindal Pipes are at the level of $815-825/mt FOB, while prices of 1/2"-3/4" pipes are at around $830-845/mt FOB. Offers of 4"-6" black ERW pipes of grade B made to API 5L are being given to the external market at around $870-875/mt FOB.
Export prices of galvanized ERW pipes of 1"-6" size made to BS 1387 from most Indian producers are at around $840-860/mt FOB.