- Tight raw material supplies supports higher pipe offers
- Improved buying supports prices but demand remains mixed
A major Indian producer of electric resistance welded (ERW) pipes has increased its September list prices for round pipes by INR 1,000-1,500/t ($10-15/t) across key markets, effective 1 September. The revision follows a INR 1,000/t increase in mid-August and reflects higher hot-rolled coil (HRC) costs, while raw material availability has also tightened, market sources said.
The revised list prices for base-grade round pipes of 25-125 NB and 2.2-6 mm thickness stand at INR 63,000/t ($662/t) exy-Raipur, INR 65,500/t ($688/t) exy-Pune and INR 65,000/t ($683/t) exy-Delhi, excluding 18% GST.
A market participant said, “We are hearing about a supply shortage of raw materials for pipes, which is one of the key reasons behind the recent price hike.”
Distributor prices edge higher
Distributor-level ERW pipe prices also increased marginally in August, although demand remained subdued in the market.
In Raipur, monthly average prices increased by INR 500/t ($5/t) m-o-m to INR 60,700/t ($638/t) in August from INR 60,200/t ($633/t) in July. In Pune, distributor-level prices averaged INR 61,600/t ($648/t) in August, up INR 200/t ($3/t) from INR 61,400/t ($645/t) in July. Delhi prices averaged INR 62,400/t ($656/t) in August, rising INR 300/t ($3/t) from INR 62,100/t ($653/t) in July.
Demand remains mixed
Pipe demand was subdued at the beginning of August, with slower bookings and rain-related disruptions weighing on market activity in some regions.
However, buying improved towards mid-August. A market participant said, “The market is currently on the higher side, and demand is good as of now. However, the outlook will depend on how demand sustains. Recent buying was mainly driven by earlier enquiries and stockists are liquidating old inventory.”
Demand improved further in the final week of August as buyers anticipated additional price increases, supporting fresh procurement despite otherwise moderate consumption.
HRC costs support higher pipe prices
BigMint’s bi-weekly HRC benchmark for IS 2062, E250, 2.5-8 mm CTL increased by INR 700/t ($7/t) m-o-m to INR 58,600/t ($616/t) exy-Mumbai in August from INR 57,900/t ($609/t) in July.
India’s HRC market firmed during the month as mills raised prices and spot availability tightened for some grades and sizes. Buying improved, mainly from downstream users, while mills reduced supplies to traders by focusing more on automotive and B2B customers. However, buyers remained cautious and mostly purchased only for immediate needs. Overall, higher mill prices, better buying and tighter supply supported HRC prices, though weak overall demand limited further gains.
Outlook
ERW pipe prices are expected to remain firm in the near term, supported by higher HRC costs and tighter raw material availability. However, further price increases will largely depend on raw material pricing and supply, while sustained demand will be key to maintaining the current momentum.
Leave a Reply