Business activity remains sluggish in the Indian market for welded pipes on the back of moderate growth of consumption expenditure, underperformance of the construction sector and hardening of interest rates. Domestic quotations of Indian welded pipes have declined by a maximum of INR 1,000/mt ($30-35/mt) over the past two weeks, while export offers have decreased by $20-40/mt on the back of currency fluctuations and extremely slack foreign demand.
Despite sluggish domestic demand, Indian welded pipe producers expect to keep their domestic prices unchanged at current levels as prices of overseas suppliers of welded pipes indicate little movement in the Indian market and as iron ore and steel scrap prices have started to show some signs of moving upward. However, export quotations may continue their downward trend amid the continued depreciation of the Indian rupee against the US dollar.
Indian domestic quotations of ½"-6" black ERW pipes made to IS 1239 or BS 1387 (light series) are at levels of INR 38,000-39,000/mt ($730-750/mt) ex-works. Prices are given 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 43,000-44,000/mt ($830-850/mt) ex-works.
Export quotations of 1"-6" black ERW pipes as per BS 1387 or IS 1239 are at the level of $800-830/mt FOB. Export prices of galvanized ERW pipes of 1"-6" size made to BS 1387 from most Indian producers are at around $900-930/mt FOB.