Negative sentiments have prevailed in the Indian seamless pipe market over the past month. The upper end of domestic prices for Indian seamless pipes has remained stable, but the lower end has decreased by INR 500-2,200/mt ($10-45/mt) in the past month. Export offers of Indian seamless pipes have dropped by a maximum of $50/mt over the same period due to the lower demand in the external market. Chinese suppliers have reduced their seamless pipe offers for Indian customers by a maximum of $50/mt during the period in question.
Demand for seamless pipes in India from projects, from the construction industry and from stockists is currently somewhat depressed owing to the lack of credit in the market and the long festival season, starting from Pitra Paksha in late September, continuing with Navratra and Diwali, and culminating in Chaat on November 12. Most market insiders think that the Indian seamless pipe market may rebound from the second half of November. The Indian government estimates steel consumption in India may rise by 10 percent in the year to March, boosted by record auto sales and higher spending on new roads and power plants.
Domestic quotations of locally produced seamless pipes 2"-4" grade B made to ASTM A106 are at around INR 57,800-64,500/mt ($1,300-1,450/mt) ex-works on theoretical weight basis, excluding tax.
Export offers of seamless pipes 2"-4" grade B as per ASTM A106 from top Indian manufacturers are being given at around $1,360-1,510/mt FOB on theoretical weight basis.
Prices for Chinese seamless pipes 2"-6" grade B as per ASTM A106/API 5L given to India are at $870-950/mt C&F actual weight.