OfBusiness Pipe Dailies | 19th July 2023

Price

• The price of Pipes has remained constant except for DI pipes. Within an 800-mile radius, 100mm K7 DI Pipes (all manufacturers) are offered for between Rs. 1250 and Rs. 1280 FOR. Rates have increased for smaller diameters as the suppliers are overbooked, and the demand for small-diameter pipes is comparatively high. MS ERW costs between Rs. 65 and Rs. 66 per kilogram (major brands) for the YST-210 grade level, while secondary brands cost between Rs. 62 and Rs. 63 per kg. The price for YST-310 would increase by roughly Rs. 2 per kg. It is projected that these prices will reduce in the local market as raw material costs continue to decline.
• HDPE currently costs Rs. 122 per kilogram. However, the price of PVC has decreased by about Rs. 4 per kilogram.

Demand & Supply

• Due to overbooking and capacity utilization, ductile iron pipe manufacturers are unwilling to estimate prices for shorter deliveries. Deliveries of larger diameter pipes have also increased as new month rollings begin to fill up the void. Lead times for MS-Spiral Pipes are getting longer since coil and plate manufacturers are delaying the rolling of raw materials into pipes. The rolling timescales of various sectors vary. Suppliers are aware that the delivery may take longer than anticipated, despite reserving a considerable number of significant orders.

News

• Rama Steel Tubes (RSTL), a manufacturer of steel pipes, GI pipes, and tubes in India, announced on Tuesday that it has inked a strategic Memorandum of Understanding (MoU) with JSW Steel Group. The MoU will help facilitate the procurement of Hot Rolled Coils (HRC) used in the manufacturing of RSTL’s steel tubes and pipes. It will also aid in the distribution of HRCs produced by JSW Steel in the western region and the manufacturing of value-added products, specifically pre-galvanized pipes, in agreement with JSW Steel Coated Products Ltd.

OFB’s Opinion

• Supply was a major issue in both the last quarter of the previous fiscal year and the first quarter of this one, and it continues to be an issue this quarter. Contractors are recommended to plan their requirements and purchases well in advance, taking into consideration delayed delivery periods. Prices are expected to continue slowly decreasing in major categories due to the state of the market as a whole. However, the scarcity of materials in small diameters has led to an increase in the price of DI pipes.