The Indian welded pipe market has continued to see low demand from both local and foreign customers. Indian welded pipe producers have cut their domestic prices for black ERW pipes by around INR 1,000/mt (17$/mt) over the past two weeks due to weaker purchasing activity as buyers wait for a clearer market trend. However, prices in US dollar terms have increased by $2-3/mt on the back of currency fluctuations. At the same time, Indian producers have kept their prices of galvanized ERW pipes at previous levels due to improved demand for these materials. Export offers of welded pipes from Indian producers have remained stable over the past fortnight amid quiet market activity. Market insiders do not think welded pipe prices in India will move up in the short run, due to soft demand from downstream industries, tight banking conditions and lower offers of import flat steel material. The imminent monsoon season, which will start in June, will also have a negative impact on the domestic welded pipe market.
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 41,000-43,000/mt ($702-736/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 47,000-49,000/mt ($805-839/mt) ex-works.
Most Indian producers are offering 1"-6" black ERW pipes as per BS 1387 (light series) to foreign customers at around $700-730/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 $800-830/mt FOB.
$1 = INR 58.38