Indian pipe manufacturers continue to remain cautious over API grade HRC imports

Indian steel pipe manufacturers continue to remain cautious over API grade HRC and plates import on the back of higher import costs.

The current offers from Korea for X70 grade API HRC stands at around $1,180-1,200/t CFR Kandla and that of X70 grade API HR plates stand at around $ 1250-1275/t CFR Kandla, SteelMint understands from market sources. The current import offers being high, Indian steel mills are resorting to the domestic market for their procurement needs. The current offers from domestic suppliers for API X70 HRC stands at around INR 75,000-77,000/t ($1,008 -1,035). Although we understand from market participants that some quantities need to be imported and thus enquiries are there but no deal has matured yet.

The Assam-based Numaligarh Refinery Limited (NRL) had initiated an integrated Refinery Expansion project, for which major pipe manufacturers are making API grade pipes. The company earlier stated NRL has embarked on a major Refinery Expansion project to treble its capacity from existing 3 MMTPA to 9 MMTPA at a project cost of more than INR 22,000 Crore, the highest ever investment in the North East of India. Of the total estimated requirement of 2,00,000 t of X70 grade (9.2-15.9 mm) of material, around 60,000 t is to be imported. The remaining quantity will be domestically procured, a credible source shared with SteelMint.

Almost all of the pipe manufacturers involved, with the exception of Jindal SAW, have started their production of API X70 pipes required for the project, SteelMint understands from market sources.

Shri. S.K. Barua, Managing Director of Numaligarh Refining Company Limited, recently tweeted that the first lot of pipelines were getting ready for dispatch from Ratnamani, Kandla, Gujarat. He emphasized that, "This is the beginning of laying of the crude oil pipeline from Paradip to Numaligarh. Assuring crude oil for all NE refineries."

The domestic players who have bagged the orders for NRL project include Ratnamani (55,000 t), Jindal SAW (26,000 t), Welspun Corp (18,500 t), Surya Roshni (26,000 t), MAN Industries (55,000 t) and AM/NS India (20,000 t).

Shri. Amar Nath, Additional Secretary, Ministry of Petroleum; Natural Gas, Govt of India has asserted that investments in the oil sector especially upstream is necessary and will continue in India. "Upstream companies have the opportunity to transform itself and contribute to the growth of the nation as well as sustainability of the climate. The need for oil and gas will continue in India for at least 20 years" he added.