As expected, during the past two weeks Indian welded pipe producers have continued to test the market and increase quotations. In particular, in the domestic market local mills' prices for black ERW pipes have risen by INR 2,500-3,100/mt ($65-80/mt, currency fluctuations taken into account), while quotations of galvanized ERW pipes have increased by INR 1,000/mt ($35-40/mt). Export offers of Indian black and galvanized ERW pipes have grown by $20-30/mt over the period of review. Indian welded pipe producers have had to increase their prices because of higher feedstock quotations. Currently, Indian HR coils are sold to local pipemakers at around INR 33,000/mt ($690/mt) ex-works, compared to INR 28,500-29,500/mt ($585-605/mt) ex-works two weeks ago. At present, local consumers, showing no interest in the new prices of Indian ERW pipes, have not accepted them. Buying activity in the major export markets remains rather weak as well. Market participants are expecting coil prices to decrease in October by around 10 percent, which will help Indian welded pipe producers to manage a price correction in accordance with the demand level.
Domestic quotations of 1"-6" black ERW pipes made to BS 1387 are at the level INR 36,500-38,100/mt ex-works ($760-795/mt) on theoretical weight basis, excluding tax. Domestic prices of Indian ½"-¾" black ERW pipes made to BS 1387 or IS 1239 are at about INR 37,690-39,080/mt ex-works ($785-815/mt). 4"-6" black ERW pipes of grade B as per API 5L are being offered for the domestic market at INR 38,120-38,360/mt ex-works ($795-800/mt). Current domestic offers of electric-welded galvanized pipes made to BS 1387 or IS 1239 are in the range of INR 41,000-43,000/mt ex-works ($855-900/mt), depending on producers.
Export prices of Indian 2"-6" black ERW pipes as per BS 1387 (light series) are at the range of $750-835/mt FOB depending on producer, while export offers of ½"-1 ½" black ERW pipes are at $840-875/mt FOB. Export quotations of 4-6" black ERW pipes of grade B as per API 5L are at the level of $850-860/mt FOB. The majority of Indian producers are offering galvanized ERW pipes of 1"-6" size made to BS 1387 at around $825-870/mt FOB; however, at the same time there are some offers in the market from quality large manufacturers at about $900-940/mt FOB.