OfBusiness Pipe Dailies | 7th 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. 1220-1250 FOR.
• MS ERW costs around Rs. 65-66/kg (major brands) for the YST-210 grade level, while secondary brands cost between Rs. 62-63/kg. The price for YST-310 would increase by approximately Rs. 2/kg. It is projected that these prices will reduce in the local market as raw material costs continue to decline. Prices decreased by Rs. 1–1.5 last week.
• HDPE is currently priced at Rs. 122/kg. However, the price of PVC has decreased by about Rs. 4/kg.

Demand and 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 having a significant number of orders reserved.

News

• A detailed meeting was held between a team of World Bank (WB) officials, city MLAs, and MC’s Zone D office regarding the upcoming 24×7 surface water supply project in the city. Positive discussions were held, and the project is expected to start soon.

OFB’s Opinion

• Supply was a major issue in both the last quarter of the previous fiscal year and the first quarter of this year, and it continues to be an issue this quarter. Contractors are advised to plan their requirements and purchases well in advance considering the delayed delivery periods. Prices are expected to slowly decrease in major categories due to the state of the market as a whole. However, the scarcity of materials in smaller diameters led to an increase in the price of DI Pipes.