In India, stable demand for welded pipes from domestic and foreign consumers and steady quotations for flats have allowed local producers to keep prices at previous levels. However, due to the strengthening of the dollar against the rupee, domestic quotations in dollar terms have declined by $5-10/mt over the past two weeks.
Domestic quotations of 1"-6" black ERW pipes made to BS 1387 are at levels of INR 35,000-37,000/mt ($750-795/mt) ex-works on theoretical weight basis, excluding tax. Current domestic prices of 1"-6" galvanized ERW pipes made to BS 1387 or IS 1239 are in the range of INR 41,000-43,000/mt ($880-925/mt) ex-works.
Indian producers are offering 1"-6" black ERW pipes as per BS 1387 (light series) to foreign customers at around $780-800/mt FOB. Export prices of galvanized ERW pipes of 1"-6" size made to BS 1387 from most Indian producers are at around $880-900/mt FOB.
There are some concerns in the market that the global economic recovery may not be as strong as earlier anticipated. Meanwhile, India needs more investments in roads, ports and other infrastructure to sustain its economic growth. Driven by stimulus packages and the easing of its monetary policy, India's economy is expected to see a slight recovery. Indian welded pipe producers will likely keep their prices at present levels and will try to stabilize their current positions.