In Indian welded pipe market, improved demand has helped Indian manufacturers to lift their quotations over the past two weeks. During this period, domestic quotations of Indian black ERW pipes have increased by INR 2,000-3,000/mt ($35-55/mt, currency fluctuations taken into account). Local producers' quotations of galvanized ERW pipes have risen by INR 3,000/mt ($55/mt) over the same period. Export offers of Indian black pipes have remained unchanged, while export quotations of galvanized ERW pipes have increased by $20-30/mt over the period under review.
Domestic quotations of 1"-6" black ERW pipes made to BS 1387 are at levels of INR 32,000-35,000/mt ($685-750/mt) ex-works on theoretical weight basis, excluding tax. Offers of locally produced ½" black ERW pipes made to IS 1239 or BS1387 are being given to the domestic market at around INR 35,500/mt ($760/mt) ex-works. Current offers of 4"-6" black ERW pipes of grade B as per API 5L are being given to the domestic market at around INR 35,300-35,800/mt ($760-770/mt) ex-works. Current domestic prices of 1"-6" galvanized ERW pipes made to BS 1387 or IS 1239 are in the range of INR 38,000-39,000/mt ($815-835/mt) ex-works.
Most Indian producers are offering 1"-6" black ERW pipes as per BS 1387 (light series) to foreign customers at around $680-700/mt FOB. At the same time, export quotations of 1"-4" black ERW pipes as per BS 1387 or IS 1239 from top Indian producers, like Jindal Pipes, are at the level of $790-810/mt FOB, while ½" pipe offers are at about $820/mt FOB. Offers of 4"-6" black ERW pipes of grade B made to API 5L are being given to the external market at around $825-830/mt FOB.
Export prices of galvanized ERW pipes of 1"-6" size made to BS 1387 from most Indian producers are at around $780-800/mt FOB.
In January welded pipe prices in India will likely continue to increase amid better demand, especially in the domestic market, and also due to the upward trend in flat product prices. With international prices picking up in December and an increase in sales observed, the Indian steelmaker SAIL announced that there might be a hike in its prices in January. Essar Steel also announced that a price increase of INR 2,800/mt is likely in January following a similar increase in international prices.
After cutting steel prices in the past two months, state-run SAIL said it is looking to hike prices next month following a recovery in demand. The steelmaker had reduced the prices of its flat steel products by up to INR 2,000/mt in the past two months, mainly on account of falling international demand.
Steel consumption in India is, however, growing at a faster rate than domestic production. During the April-November period of the current year, domestic production has grown by three percent, whereas local steel consumption has shown growth of 8.1 percent over the same period. Most of the steel consumption growth in India is due to the housing, infrastructure, automotive and consumer goods sectors. Considering that steel demand in India is likely to grow further in the future, the Indian government is facilitating the setting up of new steel production capacities in the country.