Demand for welded pipes in India remains low with economic activity slowing down and a decline seen in new infrastructure projects. Domestic quotations of black ERW pipes from Indian producers have remained stable over the past fortnight in a quiet market, while prices of galvanized ERW pipes have gone up by RMB 1,000-2,000/mt ($22-41/mt) on the back of high production costs despite scarce trading activity. Meanwhile, export offers of welded pipes from India have declined by $60-80/mt over the past two weeks due to low buying interest. Market players believe that depressed demand and the liquidity issue mean there will be a lack of support for any hike in welded pipe prices in India in the coming short-term period.
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 39,000-41,000/mt ($723-760/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 46,000-47,000/mt ($853-871/mt) ex-works.
Most Indian producers are offering 1"-6" black ERW pipes as per BS 1387 (light series) to foreign customers at around $700-740/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 $780-820/mt FOB.