Market insiders report improving demand for Indian welded pipes from both domestic and foreign customers. Over the past two weeks domestic quotations in local currency have remained unchanged, while, due to the weakness of the US dollar against the Indian rupee, the prices in the US dollar terms have increased by $15-20/mt. Export quotations have risen by $10-20/mt over the period of review.
Domestic quotations of 1"-6" black ERW pipes made to BS 1387 are at levels of INR 33,000-35,000/mt ($725-770/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 39,000-41,000/mt ($855-900/mt) ex-works.
Indian producers are offering 1"-6" black ERW pipes as per BS 1387 (light series) to foreign customers at around $700-740/mt FOB. Export prices of galvanized ERW pipes of 1"-6" size made to BS 1387 from most Indian producers are at around $810-840/mt FOB.
Indian pipe makers may increase their quotations in the coming weeks due to steadily growing prices for flat products from local and foreign suppliers. However, they think that the recent hikes in coil prices by companies like SAIL and TATA Steel were partly speculative and hope feedstock quotations will soften a bit in the next two weeks as demand in the domestic market and bullish sentiments are likely to ease.