Due to stable demand for Indian welded pipes from both local and foreign customers and high prices for flats, Indian producers have increased their quotations. Domestic prices of Indian welded pipes have increased by INR 1,000/mt ($25-30/mt, currency fluctuations taken into account) over the past two weeks, while export quotations have risen by a maximum of $50-60/mt during the same period.
Domestic quotations of 1"-6" black ERW pipes made to BS 1387 (light series) are at levels of INR 36,000-38,000/mt ($780-820/mt) ex-works, while 7"-14" black ERW pipes are at about INR 36,500-36,600/mt ($790/mt) ex-works on theoretical weight basis, excluding tax. Current domestic prices of 2"-4" galvanized ERW pipes made to BS 1387 or IS 1239 (light series) are in the range of INR 41,000-44,000/mt ($885-950/mt) ex-works, while 1"-1 ½" galvanized pipes are at INR 45,000-48,000/mt ($975-1,040/mt) ex-works. Domestic quotations of 7"-14" galvanized pipes made to BS 1387 (light series) with plain ends are at around INR 44,000/mt ($950/mt) ex-works.
Export quotations of 1"-6" black ERW pipes made to BS 1387 (light series) from most Indian producers are at $750-800/mt FOB. At the same time, top Indian producers, like Jindal Pipes, are offering 1"-6" black ERW pipes as per BS 1387 (light series) to foreign customers at around $830-860/mt FOB.
Export prices of galvanized ERW pipes of 1"-6" size made to BS 1387 from most Indian producers are at around $850-900/mt FOB. Export prices of galvanized ERW pipes of 2"-4" size made to BS 1387 from quality Indian producers are at around $940-1,000/mt FOB, while 1"-1 ½" galvanized pipes are at $1,020-1,070/mt FOB. Export quotations of 7"-14" galvanized pipes made to BS 1387 (light series) with plain ends are at around $995-1,000/mt FOB.
With the economy back on a growth path, market participants expect that demand for welded pipes in India will continue to expand in the coming period. The creation of infrastructure, including underpasses, flyovers, automobile and ancillary hubs, etc., and Indian Railways' high-speed ‘Golden Rail Corridor' project will have a positive impact on steel demand in India. For the coming weeks, the Indian welded pipe market is expected to see an upward trend, but without any big changes in prices.