Under the influence of dropping import quotations from China and moderate buying activity in the Indian market, India's local producers of seamless pipes have cut their domestic prices by INR 1,000-1,440/mt over the past five weeks. Yet, the prices in US dollar terms have even increased by $5/mt in some cases due to currency fluctuations. Export offers of Indian pipes, on the whole, have remained within the previous price range, with just the lower end moving down by $10-40/mt. Market participants have also noted that the prices of Chinese pipes to the Indian market have dropped by $50-70/mt over the period under review.
From next year the recovering economy in India and overseas is expected to boost investments and demand for seamless pipes. Market players are expecting to get new contracts from the oil and gas and power supply sectors. Indian companies are also looking at other overseas markets, in South America and South Africa. Meanwhile, the International Monetary Fund has forecast that India's economy will grow by 5.4 percent this year.
Most offers of Indian seamless pipes 3"-10" grade B made to ASTM A106 are being given to the domestic market at around INR 42,000-43,000/mt ex-works ($900-920/mt) on theoretical weight basis, excluding tax. The quotations of 2"-4" seamless pipes grade B made to ASTM A106 from top Indian producers are at INR 46,700-48,700/mt ex-works ($1,000-1,040/mt).
The majority of export offers of Indian seamless pipes 1"-6" grade B as per ASTM A106 are standing at around $900-950/mt FOB. Meanwhile, export quotations of the same pipes, 2"-4", from the main Indian pipe producers are at the level of $1,050-1,100/mt FOB.
Current quotations of Chinese seamless pipes 1"-6" grade B made to ASTM A106/API 5L are at $680-720/mt C&F on theoretical weight basis.