Indian pipe mills are planning to raise the list price of electric resistance welding (ERW) pipes with effective from 12th Oct’20, on account of higher raw materials prices, SteelMint came to learn from market sources.
As per SteelMint’s assessment, the tentative price of pipes of base grade (25-125 NB, 2.2-8 mm thickness) is likely to be around INR 47,750/t, ex-Mumbai – up from INR 46,750/t last week.
Current offers by the leading Raipur-based ERW pipe-maker, APL Apollo, are assessed at INR 46,750/t (ex-Mumbai), INR 45,000 (ex-Raipur) and INR 46,500 (ex-Delhi).
Tata Tubes is reported to be booking coil-based pipes at INR 46,500/t (ex-Jharkhand) for October, compared to the last revised price in Sep’20 at INR 45,500/t. The mill has raised the list price by INR 1000/t on 1st Oct’20 on account of robust demand, according to latest information with SteelMint.
A pipe distributor from Maharashtra stated, “Major Indian pipe mills are planning to announce another price hike by around INR 1,000/t at the end of Oct’20, considering the upside in global prices and tight supply.”
Giving a further push to prices are high export volumes amid reviving demand.
Indian pipe mills are struggling to restart operations at similar capacity levels after the exodus of workers during the lockdown. Another major concern for Indian pipe manufacturers is the strained supplies of HRC as major steel mills are undergoing temporary maintenance shutdown thereby disrupting monthly HRC production.
Meanwhile, grades of Patra-based pipe prices have increased by INR 500-600/t in the last few days amid rising billet prices.
Current offers for base grade (41-60 OD, 2.0 -3.2 mm thickness) Patra-based ERW pipe mills are reported at INR 35,750 /t (ex- Raipur), and INR 37,600-38,100/t (ex-Mandi), excluding 18% GST.
Leave a Reply