Indian Steel Pipe Market Sees Optimism Ahead, Will it Sustain?

The domestic steel pipe industry is experiencing a supported trend along with demand improvement. As the industry navigates through supply shortages, stakeholders must keep an eye on the market and remain proactive to navigate through these obstacles and opportunities.

Ductile Iron Pipe Market

The demand for Ductile Iron (DI) pipes continued to surge which contributed in price hikes. A significant shortage in supply still persists for smaller-diameter DI pipes. However, manufacturers refrain from floating offers in the spot market which is somewhere indicating a scarcity. 

The cost of DI pipe (100mm K7) however is around Rs.1,360-1400/- within a radius of 800-mile. The price hike is reflecting a panic-like situation among suppliers due to sudden and unprecedented demand. They are overbooked now due to bulk purchases last week. 

Despite challenges in estimating costs due to overscheduling and capacity constraints, demand for DI pipes is expected to rise steadily. This increased demand is caused by urbanization and commercialization efforts in emerging nations.

ERW Pipe Segment

In the realm of Mild Steel (MS) Electric Resistance Welded (ERW) pipes, both primary and secondary brands witnessed price increases amid active demand. Secondary ERW pipe (YST-210 grade) starts from Rs. 61,000 per ton, while, primary mills are offering material at around Rs. 63,000 per ton. 

Furthermore, there is an additional charge for YST-310 grade as well. The recent price hikes in ERW patra pipe (41-60 OD) in Raipur and Mandi Gobindgarh signal a trend of rising raw material costs and improved trading activities.

Pipe Producers Increase ERW Pipe Offers

Major Indian pipe producers have raised their offers in ERW pipe segment for early-May 2024 sales. According to industry sources’ reports, below mentioned pipe makers revised prices with an increase of around Rs. 1,000 per ton in their offers:

• APL Apollo / Goel / Sambhav – Raipur
• MS shakti / MPL – Hyderabad 
• DPL pipes / Gaurang – Delhi

MS Spiral Pipes

Lead times for MS-Spiral pipes are lengthening due to delays in rolling raw materials, with suppliers acknowledging late dispatches despite reserving large orders. The ongoing domestic infrastructure projects focus on enhancing water sanitation infrastructure, particularly in urban sewage applications. This is likely to support steel pipe market expansion chances further.

Market Outlook for Steel Pipe Segment

DI pipe market is going through a supply crunch. Manufacturers faced full bookings until May, prompting contractors to plan purchases well in advance to mitigate delivery delays. 

ERW pipe rates, after hitting a yearly low in the first month of the quarter, are poised for an increase. The ongoing demand surge is expected to remain for DI pipes in the upcoming months as well. 

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