Demand for Indian seamless pipes weakens

Friday, 22 April 2011 12:05:42 (GMT+3)   |  
       
Indian seamless pipe prices have started to go down amid sluggish buying activity in the local and international markets. Over the past month domestic quotations of Indian seamless pipes have decreased by INR 3,000-5,000/mt ($70-110/mt). Export offers of Indian seamless pipes have declined by $85-110/mt over the same period. At the same time Chinese suppliers have increased their seamless pipe offers for Indian customers by $30-70/mt during the period in question amid higher production costs. Indian producers of seamless pipes think that prices may go down further as the rainy season is approaching and so demand is unlikely to revive.
 
Most offers of Indian seamless pipes 2"-10" grade B made to ASTM A106 are being given to the local market at around INR 55,000-60,000/mt ($1,230-1,340/mt) ex-works on theoretical weight basis, excluding tax.
 
The majority of export offers of Indian seamless pipes 2"-10" grade B as per ASTM A106 are standing at around $1,250-1,350/mt FOB. Meanwhile, export quotations of the same pipes, 2"-4", from top Indian pipe producers are at the level of $1,500-1,600/mt FOB.
 
Prices for Chinese seamless pipes, 2"-6" grade B as per ASTM A106/API 5L, given to India are at $1,030-1,080/mt C&F actual weight.

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