India: Major ERW pipe producer keeps list prices stable in Raipur for early-Feb’25 sales

• Prices stable despite increase in HRC tags by tier-1 mill
• Distributor-level prices up by INR 400/t m-o-m in Jan

A major Indian ERW pipe manufacturer, specialising in HRC-based products, kept prices of its base-grade pipes (25-125 NB, 2.2-6 mm) stable for early-February 2025 sales, sources informed BigMint.

Post-revision, prices stood at INR 56,000/t ($640/t) exw-Raipur, excluding 18% GST. It is worth noting that the company had hiked prices by INR 1,000/t ($11/t) m-o-m from early-January 2025 sales.

Although their February price list remains unchanged, it has been reported by distributors that the company has adjusted its discount structure. Specifically, discounts for early February 2025 sales have been reduced by approximately INR 1,000-2,000/t ($11-23/t).

Additionally, the manufacturer kept prices stable m-o-m at INR 57,000/t ($651/t) exw, exclusive of 18% GST, in regions such as Hyderabad, Bangalore, Delhi, Mumbai, and Pune.

Meanwhile, distributor-level monthly average prices of ERW pipes in Raipur went up by INR 400/t ($5/t) m-o-m to INR 51,700/t ($590/t) exy-Raipur in January 2025 against INR 51,300/t (586/t) in December 2024.

Tier-I mills hike HRC list prices

Indian tier-I steel mills have officially announced an increase of INR 1,500-2,000/t ($17-23/t) in list prices of hot-rolled coils (HRCs) and cold-rolled coils (CRCs) for February 2025 sales against end-January 2025 levels. Although multiple mills have confirmed this price hike, official confirmations from a few other major players are still pending.

Monthly average prices of trade-level HRCs, which is a key raw material for ERW pipes, edge up by INR 200/t ($2/t) m-o-m to INR 47,100/t ($538/t) ex-Mumbai in January against INR 46,900/t ($536/t) in December. Declining import inventory levels, coupled with speculation about a potential safeguard duty attributed to the surge in prices.

Outlook

The overall outlook for India’s ERW pipe market leans towards potential price increases in the near term, driven by HRC price hikes, reduced discounts, and stable distributor prices. However, manufacturers are taking a cautious approach in some regions, indicating awareness of potential demand sensitivities. The market will closely watch these factors unfold in the coming weeks to determine the true direction of ERW pipe prices.