Indian producers raise their seamless pipe prices despite slack demand

Friday, 28 August 2015 17:09:20 (GMT+3)   |  
       

Activity in the Indian seamless pipe market is still quiet. However, most domestic prices for Indian seamless pipes have increased by INR 2,000-3,000/mt ($30-45/mt) over the past month, while top Indian producers have raised their domestic offers of seamless pipes by INR 3,500-5,000/mt ($53-76/mt). The above increases in seamless pipe prices have been due to the higher cost of raw materials and the sharp depreciation of the rupee. However, Indian consumers are very skeptical about this increase because of the sluggishness of the domestic market. The majority of export offers of Indian seamless pipes have risen by $5-20/mt over the past month, while export seamless pipe offers from top Indian manufacturers have moved up by $30-60/mt. Meanwhile, the export volume of seamless pipes from India remains low due to the weakness of the international markets.
 
Most offers of Indian seamless pipes of 2"-10" grade B made to ASTM A106 are being given to the local market at around INR 50,000-53,000/mt ($756-801/mt) ex-works on theoretical weight basis, excluding tax. Domestic quotations of 2"-4" seamless pipes of grade B made to ASTM A106 from top Indian pipe producers are in the range of INR 55,500-58,000/mt ($839-876/mt) ex-works, excluding tax.

The majority of export offers of Indian seamless pipes of 2"-6" Sch 40 grade B as per ASTM A106 are standing at around $815-850/mt FOB on theoretical weight basis, while export offers of seamless pipes from top Indian pipe producers are at $900-950/mt FOB.

$1 = INR 66.18


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