Major Indian pipe manufacturers have announced an increase of INR 2,500-5,000/t($33-67) in the list price of coil-based pipes for Apr ’21 deliveries on the back of an uptick in Hot-Rolled Coil prices.
The effective trade offer by India’s largest structural steel tubes manufacturer, APL Apollo Tubes Limited, for base grade ERW pipes (25-125 NB, 2.2-6 mm thickness) is assessed at INR 61,000 (exy-Delhi), INR 62,250/t (exy-Mumbai) and INR 60,000/t (exy-Raipur). Prices do not include GST @ 18%.
A pipe distributor from Raipur stated, “A major pipe mill is planning to announce another price hike by around INR 2,000/t on 12th of April, considering the upside in flat steel prices and tight supply.”
Tata Tubes is reported to be booking coil-based pipes at INR 66,000/t (ex-Jharkhand) for Apr ’21 deliveries, compared to the last revised price in Mar ’21 at INR 61,000/t. Prices do not include GST @ 18%. The mill has raised the list price by INR 5,000/t ($67) during the first week of this month and is planning to further raise pipe prices by INR 2,000/t from 10th April onwards, on account of robust demand, according to the latest information with SteelMint.
Uptick in HRC prices leads to hike in ERW pipe prices-The country’s steelmakers continue to hike HRC prices and are indicating more price hikes in the coming months, especially when domestic rates are still at a discount to international levels.
SteelMint’s assessment for (2.5-8 mm thickness, IS2062) HRC, stood at an all-time high at INR 60,500-61,000/t (exy-Mumbai). Prices do not include GST @ 18%.
As the market is going through a structural change, we expect prices to remain strong in the months ahead on the back of competitive overseas market, healthy demand from consumer durables and automotive industry.
Pipe demand to remain strong owing to healthy sales bookings in real estate sector-Sales in primary residential markets across eight major cities grew 44% in Jan-Mar ’21 to nearly 72,000 units as demand recovered, according to Knight Frank India. On an annual basis, housing sales in Mumbai and Pune rose 49% and 75% respectively in Jan-Mar ’21.
The key markets-Mumbai and Pune witnessed significant rise in sales as the two markets received substantial backing from the State Government in the form of reduced stamp duty.
Outlook-
Owing to Covid-19 and measures taken by the Government such as reduction in stamp duty charges, demand for self-owned houses has gone up which in turn is most likely to increase the demand for ERW pipes.
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