Despite increasing prices, Indian pipe exporters understand that real demand in the external market is still very low. Thus, during the January-April period of this year exports of welded pipes from India came to 44,907 mt, registering a decrease of 570,803 mt or 92.71 percent from the same period of the previous year.
On the other hand, India's pipe producers are hoping for strong support from local customers. Owing to the Indian government's investments worth $8.95 billion in the construction of roads, telephone system, electrification and irrigation, observers in India expect a 10 percent increase in demand for steel products in the domestic market in 2009.
It is generally believed that the future market will not see any big increase such as seen previously, but will remain on a positive trend.
Current offers of Indian black ERW pipes are being given to the domestic market at about INR 33,500-35,000/mt ex-works ($700-730/mt). Local quotations of electric-welded galvanized pipes are in the range of INR 43,000-45,000/mt ex-works ($900-940/mt), depending on producers. These prices are on theoretical weight basis, excluding tax.
Export prices of Indian 1"-10" black ERW pipes as per BS 1387 (light series) are in the range of $720-750/mt FOB, with export offers of 1"-10" galvanized ERW pipes at $830-870/mt.