It was widely expected that with the culmination of the Diwali and Chaath festivals demand for welded pipes in India would pick up. However, buying activity still remains weak, puncturing any hopes for an upturn in prices. Indian welded pipe makers have reduced their domestic quotations of ERW pipes by INR 1,000-1,500/mt ($50-55/mt) over the past two weeks, while export prices have declined by $20-45/mt. The flat product market in India has weakened further due to sluggish demand as well as weakening global sentiments. In the coming month, Indian welded pipe prices may continue to decrease on the back of weak buying interest and falling feedstock prices. Nevertheless, market insiders think that demand from both local and foreign customers may increase starting from January.
Domestic quotations of 1"-6" black ERW pipes made to IS 1239 or BS 1387 (light series) are at levels of INR 34,000-35,000/mt ($745-770/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 41,000-42,000/mt ($900-920/mt) ex-works.
Most Indian producers are offering 1"-6" black ERW pipes as per BS 1387 (light series) to foreign customers at around $730-770/mt FOB on theoretical weight basis. Export prices of galvanized ERW pipes of 1"-6" size made to BS 1387 from most Indian producers are at around $850-880/mt FOB.