Indian Steel Pipe Industry Outlook: Will Supply Concerns Continue In Stagnant Domestic Pipe Market?

The domestic Pipes industry in India has remained stagnant over the past 3-4 weeks with no fluctuations in prices. Demand in the spot market has been average as well. MS ERW Pipe’s rolling schedules at plants are unpredictable. Although suppliers have booked a decent number of sizable orders, knowing that the delivery may get delayed for longer. In this article, we will discuss the current price, supply concerns and the market outlook for the Indian Pipe industry.

Current Prices

• Ductile Iron Pipe- Steel mills in India have been offering Ductile Iron Pipe with 100mm K7 at around Rs. 1,200-1,260 per meter ex-Kharagpur across all major brands.
• MS ERW Pipes– The primary MS ERW Pipe and MS GI Pipe of YST-210 grade prices remained in the range of Rs. 67-68/kg, while secondary brands’ offers were between Rs. 63-64/kg. 

Limited Availability And Supply Concerns

• MS ERW Pipes– Delivery lead times for MS ERW Pipes with larger diameters (>400mm) seem to be increasing, and hence, the availability of larger diameter ERW Pipes is extremely limited, raising supply concerns.
• MS-Spiral Pipes- MS-Spiral Pipes availability is observed to be a constraint in the market due to delays in the delivery of raw material, i.e., coils and plates from suppliers like SAIL and JSW.

Ductile Iron Pipe Supply Improving

Before Ductile Iron Pipe sellers were seen to be constrained in quoting offers in the market due to overbooking. However, the supply has been gradually improving, with sellers offering larger diameters, i.e., 400mm, along with smaller diameter Pipes. The largest di Pipe manufacturers in India like Rashmi Metaliks and Electrosteel Castings have sufficient stock of 350mm K7 and 400mm K7 at the plant, respectively.

Market Outlook

• DI Pipe- DI Pipe manufacturers are not confirming the delivery timeline for the booked orders. The rolling of smaller dias is happening on a bi-weekly basis. A drop in order is predicted in April due to the overbooking of mills. This situation is expected to improve from May 2023 onwards, market participants reported to ofbusiness.
• MS ERW Pipe- MS ERW Pipe contractors are suggested to procure YST 210 Grade material this month as YST 310 Grade is expected to take time in delivery. Also, the rumors of raw material shortage by the end of April 2023 are making distributors and traders panic and are suggested to book material as early as possible.

OFB’s Insight

While the stagnant domestic Pipe market in India and limited availability of larger diameter ERW Pipes have raised supply concerns, the largest DI Pipe manufacturers in India have sufficient stock. Contractors are advised to plan their requirements in advance to avoid delivery delays. With the situation expected to improve in May 2023, it is crucial to stay informed of market developments to make informed decisions.

Read more: Stainless Steel Industry In India: Stable Prices For 300 Series, Downtrend In These Grades

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