Indian steel producers Tata Steel, Steel Authority of India Ltd (SAIL) and Ispat Industries have raised their flat product prices for October by around INR 1,500/mt compared to September levels. Cold rollers and galvanized steel producers have said they are waiting for other hot rolled manufacturers to increase their prices. Last month, some steel companies had increased their prices by INR 500-1,000/mt. Even though flat steel prices have been on the rise, welded pipe prices have decreased by around INR 1,000-1,600/mt for local customers and by $35-50/mt for foreign consumers over the past three weeks. There has not been any chance of an increase in welded pipe prices due to the lack of buying activity in the domestic market and in the key export markets.
Domestic quotations of 1"-6" black ERW pipes made to BS 1387 are at the level INR 35,000-36,500/mt ($750-780/mt) ex-works on theoretical weight basis, excluding tax. Current domestic offers of electric-welded galvanized pipes made to BS 1387 or IS 1239 are in the range of INR 40,000-42,000/mt ($855-900/mt) ex-works, depending on producers.
Export prices of Indian 1"-6" black ERW pipes as per BS 1387 (light series) are at the range of $750-800/mt FOB depending on producer. Export quotations of galvanized ERW pipes of 1"-6" size made to BS 1387 are at around $800-850/mt FOB.
The rate of increase of steel demand in India has come down owing to the global recession, but steel demand is still showing a growth of five to six percent as the demand for automobiles and other goods is providing support. In the coming period, prices may not go up much due to the monsoon season. Steel demand could be slightly hurt by a weaker-than-usual monsoon season, which could result in lower farm incomes and lead to a drop in rural construction activities.