The situation in the Indian welded pipe market has improved as compared to previous months and, therefore, there is scope for better prices. Moreover, at the beginning of this week, Indian flat steel producers raised their domestic quotations by INR 750-1,200/mt ($16-26/mt) for January production as compared with December levels. Over the past two weeks, domestic quotations of Indian black ERW pipes have increased by INR 2,000-3,000/mt ($30-60/mt, currency fluctuations taken into account). Local producers' quotations of galvanized ERW pipes have risen by INR 1,000/mt ($10-15/mt) over the same period. Export offers of Indian pipes have increased by $30-50/mt over the period under review. The upward movement in Indian welded pipe prices will likely be further boosted by strong domestic demand from the automobile, infrastructure and other sectors. Indian steel majors feel that better international prices and increases in coking coal and iron ore prices will also provide support for rises in steel prices in the domestic market.
Domestic quotations of 1"-6" black ERW pipes made to IS 1239 or BS 1387 (light series) are at levels of INR 36,000-38,000/mt ($780-830/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 42,000-43,000/mt ($915-935/mt) ex-works.
Most Indian producers are offering 1"-6" black ERW pipes as per BS 1387 (light series) to foreign customers at around $780-800/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 $850-870/mt FOB, while ½"-3/4" pipe offers are at about $870-880/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 $910/mt FOB.
Export prices of galvanized ERW pipes of 1"-6" size made to BS 1387 from most Indian producers are at around $890-900/mt FOB.