Indian domestic demand for steel pipes and tubes will show significant rise in demand in fiscal 2021-22 driven by economic recovery and large infrastructure development, a steel sector report by CARE Ratings said on Thursday, July 15.
According to the rating agency, steel pipe industry is one of the key to infrastructure sector and extension of pipelines for river interlinking to providing piped drinking water of each household will offer demand push for the steel product.
The overall size of domestic steel pipe and tubes industry has been growing in double digits over the last four years and current valued at $8 billion, the rating agency report said.
The report said that the global pipes and tubes market is valued at $90 billion and projected to grow at compounded annual growth rate (CAGR) of 4 percent over the next three years and the Indian market expected to contribute around 9-10 percent of the global consumption.
The decreasing share of unorganized and small players and increasing dominance of larger players is expected to result in better pricing power and margins for the larger players especially in ERW segment which has been the most fragmented segment historically, while other segments such as SAW, ductile and seamless pipes segments are traditionally dominated by few large players, the CARE report said.