India: Major ERW pipe producer hikes list prices in Raipur for early-Jan'25 sales

• Hike follows increase in HRC tags by tier-1 mills
  
  
• Distributor-level prices fall by INR 600/t m-o-m in Dec
  
  

A major Indian ERW pipe manufacturer, specialising in HRC-based products, has increased prices of its base-grade pipes (25-125 NB, 2.2-6 mm) for early-January 2025 sales, sources informed BigMint.

Post-revision, prices stood at INR 56,000/t ($652/t) exw-Raipur, excluding 18% GST, reflecting an increase of INR 1,000/t ($12/t) m-o-m. It is worth noting that the company had reduced prices by INR 1,000/t ($12/t) m-o-m for early-December 2024 sales.

The manufacturer raised tags, citing a hike in hot-rolled coil (HRC) prices by primary mills. As HRC is the primary raw material used in the production of ERW pipes, the price hike is a direct response to the increased cost of raw materials.

However, the manufacturer kept tags stable m-o-m at INR 57,000/t ($664/t) exw, exclusive of 18% GST, in regions such as Hyderabad, Bangalore, Delhi, Mumbai, and Pune.

Meanwhile, distributor-level monthly average prices of ERW pipes in Raipur fell by INR 600/t ($7/t) m-o-m to INR 51,300/t ($597/t) exy-Raipur in December 2024 against INR 51,900/t ($604/t) in November.

Tier-I mills hike HRC list prices

Indian tier-I steel mills have officially announced an increase of INR 1,000-1,500/t ($12-18/t) in list prices of hot-rolled coils (HRCs) and cold-rolled coils (CRCs) for January 2025 sales against end-December 2024 levels. The price hike was largely driven by market speculation surrounding the potential implementation of safeguard duties.

Previously, monthly average prices of trade-level HRCs, which is a key raw material for ERW pipes, decreased by INR 1,200/t ($14/t) m-o-m to INR 46,900/t ($546/t) ex-Mumbai in December against INR 48,100/t ($560/t) in November. A notable slowdown emerged due to weak demand during the month.

Outlook

ERW pipe prices in India are expected to trend upward in the near term, fuelled by higher HRC tags, although weak demand may limit gains.

The Indian government's policies, including the potential imposition of safeguard duties, will play a significant role in shaping the ERW pipe market. Demand growth, driven by infrastructure development and construction activities, will also influence price trends.