Indian welded pipe producers are still facing sluggish demand in the domestic market and in all sales outlets. The situation is also aggravated by the downward price trend in the local flat steel market. However, Indian pipe makers have maintained their offers stable over the past two weeks, though the market outlook for the short-term is negative. Market players do not expect a pick-up in domestic demand before October, while buying activity in foreign markets will likely remain thin in the coming month amid the slowdown in economic activity in most countries.
Domestic quotations of 1/2"-6" black ERW pipes made to IS 1239 or BS 1387 (light series) from Indian producers are at levels of INR 41,000-43,000/mt ($736-772/mt) ex-works, excluding tax. Current domestic prices of 1"-6" galvanized ERW pipes made to BS 1387 (light series) are in the range of INR 47,000-48,000/mt ($844-862/mt) ex-works.
Indian producers are offering 1"-6" black ERW pipes as per BS 1387 (light series) to foreign customers at around $750-800/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 $820-850/mt FOB.