Indian welded pipe producers have been forced to lift their prices as prices of coking coal and iron ore are increasing at a rapid pace. Over the past two weeks, domestic quotations of Indian black ERW pipes have increased by INR 1,000/mt ($10/mt, currency fluctuations taken into account), while local Indian producers' quotations of galvanized ERW pipes have remained unchanged over the same period. Export offers of Indian pipes have increased by $20-50/mt over the period under review. The prices of flat steel materials have continued to soar in India's domestic market, which will support further welded pipe price increases in the country. In particular, at the beginning of January, Indian steelmakers JSW and Essar Steel increased their prices of flat steel products by around four to five percent, while SAIL decided on a three percent rise in the price of its products. With demand gradually picking up in India, welded pipe prices in India are expected to increase further. However, due to relatively higher raw-material costs, profit margins are likely to contract.
Indian domestic quotations of 1"-6" black ERW pipes made to IS 1239 or BS 1387 (light series) are at levels of INR 38,000-40,000/mt ($825-870/mt) ex-works. Prices are given excluding tax and 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 44,000-46,000/mt ($955-1,000/mt) ex-works.
Most Indian producers are offering 1"-6" black ERW pipes as per BS 1387 (light series) to foreign customers at around $830-870/mt FOB on theoretical weight basis. Export prices of galvanized ERW pipes of 1"-6" size made to BS 1387 from most Indian producers are at around $900-930/mt FOB.