India: APL Apollo Increases Pipe Price by INR 1,000/MT for Jan'20

APL Apollo Tubes Ltd - one of the largest ERW pipes manufacturers in India has increased price by INR 1,000/MT (USD 14) for Jan'2020 deliveries.

The company's offer for Jan'20 are floated at around INR 40,500/MT (USD 568), which was hovering at INR 39,500/MT in Dec'19. Prices mentioned are on ex-plant basis in Chhattisgarh, central India .

As per officials, the prices hike further on account of constant surge in domestic flat steel prices, which last week increased by INR 500-1,000/MT in traders market followed by decent export bookings at increased offers. Indian mills have recently raised HRC export offers to Vietnam by USD 10-15/MT for Feb shipments.

Further SteelMint analysed that, with rising production the company has achieved growth in sales volume by 22% to 3.63 lakh tons during the Q2 FY20 as against 3.04 lakh tons in Q2 FY19. Also net profit after tax rose to INR 55 crore in Q2 FY20 compared to INR 27 crore in Q2 FY19.

APL Apollo Tubes Limited is the largest producer of Electric Resistance Welded (ERW) Steel Pipes and Sections in India, with a capacity to produce 2.5 MnT pa. The company has vast distribution network is spread across India, with warehouses and branch offices in 29 cities.

As per assessment, the prices through the secondary ERW pipe mills being on higher side and recorded hike of INR 2,500-4,000/MT in a month duration with fresh offers at INR 34,500-34,600/MT ex-Raipur (Chhattisgarh), INR 36,800/MT ex-Mandi Gobindgarh & INR 34,500-34,700/MT ex-Rourkela (Odisha), excluding of 18% GST.