Although buying activity remains satisfactory in the Indian domestic market for welded pipes, local producers have decided not to raise their quotations as end-user demand is recovering at slower rates than expected. However, in dollar terms domestic prices have declined by $20-25/mt over the past two weeks due to the weakening of the rupee against the dollar. Export demand for Indian welded pipes is very weak because of strong competition with overseas suppliers and low buying activity in the global market. Export prices for Indian welded pipes have remained almost unchanged from two weeks ago. Market players believe that Indian producers will keep their prices stable in the coming short-term period, as no significant changes are expected in the domestic and foreign markets.
Indian domestic quotations of ½"-6" black ERW pipes made to IS 1239 or BS 1387 (light series) are at levels of INR 41,000-42,000/mt ($750-765/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) or IS 1239 are in the range of INR 47,000-48,000/mt ($860-875/mt) ex-works.
Most Indian producers are offering 1"-6" black ERW pipes as per BS 1387 (light series) to foreign customers at around $800-820/mt FOB on theoretical weight basis. At the same time, export quotations of 1"-4" black ERW pipes as per BS 1387 or IS 1239 from top Indian producers such as Jindal Pipes are at the level of $850-860/mt FOB, while prices of 1/2"-3/4" pipes are at around $870/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 $900-920/mt FOB.