The situation in the Indian welded pipe market has not been very positive in the past two weeks due to sluggish purchasing activity and high stocks against the background of the rainy season. Domestic quotations of Indian galvanized ERW pipes have decreased by a maximum of INR 1,000/mt ($20-25/mt) over the past two weeks as local demand and general consumption are still unable to provide support for increased offer levels. Meanwhile, offers of black ERW pipes for the domestic market have remained at previous levels. At the same time, export prices of Indian welded pipes have increased by $20-30/mt due to slightly improved market conditions. Market sources report that the general market sentiment in the Indian market is positive enough and that the prices of Indian welded pipe makers may switch to an upward direction in the coming period. Indian welded pipe producers expect a sharp rise in steel prices during the current fiscal year on the back of the economic recovery and the strong performance by consumer industries like infrastructure and automobiles. With economic and steel market conditions becoming more favorable and with steel producers needing to recover the rise in input costs, it is anticipated that there will be a strong rise in steel prices in 2010-2011.
Domestic quotations of 2"-6" black ERW pipes made to IS 1239 or BS 1387 (light series) are at levels of INR 33,000-36,000/mt ($700-765/mt) ex-works, 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 39,000-41,000/mt ($830-870/mt) ex-works.
Export quotations of 1"-6" black ERW pipes as per BS 1387 or IS 1239 are at the level $750-800/mt FOB on an actual weight basis. Export prices of Indian galvanized ERW pipes of 1"-6" size made to BS 1387 are at around $850-900/mt FOB