- Inventory build-up pressures distributor sentiment
- Weak construction demand, tight liquidity limit sales
A major Indian producer of electric resistance welded (ERW) pipes, specialising in hot-rolled coil (HRC)-based products, has reduced its August 2026 list prices for round pipes by INR 1,000/t ($10/t) across key markets, reflecting subdued demand and slower sales momentum. The revision applies to the producer’s base-grade round pipes (25-125 NB, 2.2-6 mm) and is effective from 1 August, market sources told BigMint.
The revised list prices stand at INR 61,000/t ($640/t) exy-Raipur, INR 63,000/t ($661/t) exy-Pune, and INR 63,000/t ($661/t) exy-Delhi, all excluding 18% GST.
According to a market participant, “Sales among major producers had slowed following the previous price increase. The latest reduction is aimed at improving bookings and supporting volumes.”
Distributor level prices soften in July
Weak market sentiment was also reflected in distributor-level prices during July. Monthly average ERW pipe prices in Raipur declined by INR 1,190/t ($12/t) m-o-m to INR 60,160/t ($631/t) from INR 61,350/t ($644/t) in June.
In Pune, distributor-level monthly average prices stood at INR 62,850/t ($659/t) in July, compared with around INR 64,320/t ($674/t) in June, down by INR 1,470/t ($15/t) m-o-m.
Demand remains under pressure
Market activity remained slow as seasonal disruptions, tight liquidity, and weak construction demand continued to weigh on buying. With demand showing little improvement, inventories kept building up, and sales remained low, prompting most buyers to purchase only as per their immediate requirements.
One market participant quoted that, “Rains across several parts of the country, coupled with liquidity issues, have slowed market activity despite adequate material availability.”
Another participant noted that “delays in construction-related registrations had affected project execution, resulting in slower procurement of pipes.”
Meanwhile, another market participant indicated that demand in southern India remains mixed. “Major brands are witnessing weak bookings, while some regional brands continue to secure relatively better orders,” the participant said.
Stable HRC market limits cost support
Raw material prices remained largely stable during July. BigMint’s bi-weekly benchmark assessment for HRC (IS 2062, E250, 2.5-8 mm, CTL) eased by INR 400/t ($4/t) m-o-m to INR 57,900/t ($607/t) exy-Mumbai from INR 58,300/t ($611/t) in June.
Throughout the month, the domestic HRC market remained stable but subdued. Procurement was largely restricted to immediate requirements amid cautious downstream demand and tight liquidity. Longer trade cycles slowed material movement and increased dealer inventories, while steady purchases from OEMs continued to provide the primary source of demand. On the supply side, mills maintained controlled spot availability and firm offer levels, keeping the overall HRC market broadly range-bound.
Outlook
BigMint expects seasonal monsoon disruptions, slower construction activity, and tight liquidity to keep demand for ERW pipes under pressure throughout August. Although stable HRC prices may prevent any significant increase in production costs, a sustained recovery in pipe prices will largely depend on a pickup in downstream construction activity and stronger buying across the distribution network.
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