Indian mills continue to focus mainly on their domestic market, and prices in the national currency have increased by a maximum of INR 2,000/mt ($40/mt, currency fluctuations taken into account) over the past three weeks. Indian core infrastructure sectors posted another month of healthy growth by wrapping up the last quarter of the financial year with 7.2 percent growth in March. The prices of steel pipes and tubes have witnessed an upward movement on account of higher input prices. Demand for Indian welded pipes from foreign buyers is moderate, but is expected to strengthen due to the continuing recovery in the international steel markets. Export prices for ERW pipes have shot up by $80-110/mt over the past three weeks amid increased flat steel prices. Taking into account the drop observed in HRC prices in Mumbai at the beginning of this week, it is expected that the uptrend in welded pipe prices may slow down in the coming short-term period.
Domestic quotations of 2"-6" black ERW pipes made to IS 1239 or BS 1387 (light series) are at levels of INR 40,000-43,000/mt ($895-960/mt) ex-works, excluding tax, while ½"-1 ½" black ERW pipes are at about INR 42,000-44,000/mt ($940-985/mt) ex-works. ERW pipes of 4"-6" made to API 5L grade B are quoted in the domestic market at INR 43,000-43,500/mt ($960-975/mt) ex-works. Current domestic prices of 1"-6" galvanized ERW pipes made to BS 1387 (light series) are in the range of INR 47,000-50,000/mt ($1,050-1,120/mt) ex-works.
Export quotations of ½"-4" black ERW pipes as per BS 1387 or IS 1239 from top Indian producers, like Jindal Pipes, are at the level $1,010-1,045/mt FOB. Export prices of Indian 4"-6" black ERW pipes of grade B according to API 5L are at around $1,030/mt FOB. At the same time, some pipe makers in India still offer 1"-6" black ERW pipes made to BS 1387 at $880-900/mt FOB. Export prices of Indian galvanized ERW pipes of 1"-6" size made to BS 1387 are at around $980-1,100/mt FOB.