Over the past two weeks prices for Indian welded pipes have dropped due to sluggish demand from local and foreign customers and also due to falling import feedstock prices. In particular, domestic prices for black and galvanized welded pipes have decreased by $25-65/mt over the past two weeks, with export prices declining by $40-50/mt.
Domestic quotations of 1"-6" black ERW pipes made to BS 1387 are at the level INR 32,000-34,000/mt ($685-730/mt) ex-works on theoretical weight basis, excluding tax. Current domestic prices of galvanized ERW pipes made to BS 1387 or IS 1239 are at the range of INR 39,000-40,000/mt ($835-855/mt) ex-works, depending on producers.
Export quotations of Indian 1"-6" black ERW pipes as per BS 1387 (light series) are at the level of $700-720/mt FOB, with export offers of 1"-6" galvanized ERW pipes at $760-800/mt FOB. Offers of 6"-16" welded pipes with 3-12.7 mm wall thickness grade B made to ASTM A53/API 5L are being given to the external market at around $720-740/mt FOB.
Market insiders are hopeful that, with construction in the real estate sector and government infrastructure projects set to pick up in the coming months, demand for long steel products and steel pipes will improve by as early as mid-November. At the same time, some Indian producers of flat products are to reduce their prices by at least INR 500/mt for November production. The producers said that there is a need to reduce the prices of flat steel products in line with softening international prices. As a result, prices for Indian welded pipes will likely decline in the coming short-term period, but by the end of November a small price increase may be expected.