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India: Major ERW pipe producer keeps list prices stable for early-Nov'24 sales

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BigMint Bureau

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4 Nov 2024, 16:00 IST

India: Major ERW pipe producer keeps list prices stable for early-Nov'24 sales

Competitive offers, stable raw material costs cited as reasons

Distributor-level prices of ERW pipes remain stable m-o-m

A major electric resistance welded (ERW) pipe manufacturer, specialising in hot-rolled coil-based products, kept list prices stable for its base-grade pipes (25-125 NB, 2.2-6 mm) for early-November 2024 sales, sources informed BigMint. Tags now stand at INR 55,000/tonne (t) ($654/t) exw in Raipur and INR 57,000/t ($678/t) exw in Hyderabad, Bangalore, Delhi, Mumbai, and Pune (both prices exclusive of 18% GST).

The manufacturer opted to maintain current pricing, citing stable raw material costs and competitive offers from major ERW pipe rivals.

In addition, distributor-level monthly average prices of ERW pipes in Raipur also remained largely stable m-o-m at INR 51,000/t ($606/t) exy-Raipur in October against INR 51,100/t ($608/t) in September 2024. Demand was weak in the pre-Diwali period, but market participants were hopeful for a rebound after the holiday season.

Trade-level HRC prices stable m-o-m

Monthly average prices of trade-level hot-rolled coils (HRCs), a key raw material for ERW pipes, remained relatively stable m-o-m at INR 48,100/t ($572/t) ex-Mumbai in October against INR 48,000/t ($571/t) in September.

A sluggish traders' market emerged ahead of Diwali, characterised by a slowdown in demand and need-based purchase activity. However, auto original equipment manufacturers (OEMs) and project sales, as well as some other sectors, provided support.

BigMint's vessel line-up data reveals a decline in import volume, with October's total imports at 564,196 t, a significant drop from September's 776,835 t and August's 627,426 t. Moreover, 51,260 t are expected in early November 2024.

Outlook

ERW pipe prices in India are expected to remain stable in the near term, supported by steady raw material costs and competitive market dynamics. While demand was sluggish pre-Diwali, a post-holiday uptick is likely.