Poor demand from local buyers as well as weak feedstock prices have caused Indian welded pipe producers to cut their domestic prices. Over the past two weeks, domestic prices of Indian welded pipes have decreased by around INR 1,000/mt, though in US dollar terms domestic quotations have increased by $7-11/mt due to currency fluctuations. Export offers for Indian ERW pipes have gone up by $20-50/mt over the period in question. Meanwhile, most foreign buyers are quite cautious about concluding purchases amid the global downward trend.
Market players believe the situation in the Indian welded pipe market will not improve in the coming month and will remain unfavorable amid subdued investment in infrastructure in the country.
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 39,000-41,000/mt ($731-769/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 45,000-47,000/mt ($844-881/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 actual weight basis. 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.