India's industrial production has not risen as much as expected, signaling weakening domestic demand as the global economy struggles to recover. However, most steel market players in India want to meet their targets before the end of the fiscal year (March 31). Domestic offers of seamless pipes have increased by INR 3,000-4,000/mt ($90-110/mt) over the past month. Export offers of seamless pipes from Indian producers have gone up by around $100/mt over the same period. Indian seamless pipe producers are trying to hold on to higher prices but demand from both local and foreign buyers lacks strength. Market participants believe there will be no price downtrend in March, though prices may rise at a slower pace in the new fiscal year as higher interest rates curb demand.
Domestic quotations of 2"-6" seamless pipes of grade B made to ASTM A106 from top Indian pipe producers are at the level of INR 61,000-64,000/mt ($1,230-1,290/mt) ex-works, excluding tax.
Export offers of Indian seamless pipes, 2"-6" Sch 40 grade B as per ASTM A106, are standing at around $1,300-1,350/mt FOB.
Prices for Chinese seamless pipes, 2"-6" Sch 40 grade B as per ASTM A106, given to India are at $880-900/mt CFR on actual weight basis, compared to $880-930/mt one month ago.