DI & ERW Pipe Market Update: Monsoon Dampens Demand, But Post-Q2 Revival Likely
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DI and ERW pipe markets are facing a slowdown due to liquidity crunch and monsoon-related project delays. Despite weak demand, prices remain stable at multi-quarter lows. Manufacturers are offering bulk discounts, expecting a revival by August-September, driven by smart city, AMRUT 2.0, and Jal Jeevan Mission tenders.
Key Highlights
- DI pipe prices remain stable despite weak demand.
- ERW pipe prices differ between primary and secondary markets.
- Monsoon delays and low liquidity impact procurement cycles.
- Demand likely to improve post-monsoon under key government schemes.
Current Pipe Prices Overview
Ductile Iron (DI) Pipes – Ex-Factory Rates
- 100mm K7 DI Pipe: ₹1,160 – ₹1,200 per unit
- 100mm K9 DI Pipe: ₹1,300 – ₹1,350 per unit
Electric Resistance Welded (ERW) Pipes – Ex-Raipur
- 25NB to 100NB (Secondary Market): ₹55,000 per metric ton
- 25NB to 100NB (Primary Market): ₹61,000 per metric ton
High-Density Polyethylene (HDPE) Granules
- Polymer Grain Price: ₹80 per kg
- Conversion Cost: ₹10 per kg
- Total HDPE Cost: ₹90 per kg
Demand & Supply: Monsoon Slows Infra Project Execution
- The infrastructure sector continues to face headwinds due to prevailing low liquidity in the market coupled with the onset of the monsoon season. As a result, demand across the Ductile Iron (DI) Pipes and ERW/MS Pipes segments has slowed considerably.
- The DI Pipes segment, which primarily caters to water infrastructure and urban development projects, is experiencing a seasonal slowdown. Ongoing monsoon rains are causing operational challenges in excavation and pipe-laying activities, leading to project delays and deferments in procurement cycles.
- Despite these challenges, manufacturers have maintained price stability, with DI pipe prices currently at multi-quarter lows. To combat sluggish demand, manufacturers are aggressively pushing for bulk orders by offering heavy discounts and flexible payment terms
Pipe Market News: Manufacturers Offer Discounts to Push Bulk Orders
- Sambhv Steel Tubes’ INR 540 Crore IPO to Open on June 25. The IPO of Sambhv Steel Tubes comprises a fresh issue of equity shares valued at INR 440 crore and an offer for sale (OFS) of shares worth INR 100 crore by promoters
- Nippon Steel has finalized its USD 14.9 billion acquisition of US Steel, securing President Trump’s approval and a “golden share” that grants the US government veto power over critical strategic decisions.
- Steel Authority of India Limited (SAIL) has kick-started the expansion of its IISCO Steel Plant in West Bengal, after receiving the environmental clearance. The new facility will manufacture advanced steel grades for the automobile and consumer durables sectors.
Expert Opinion: Demand Recovery Expected from August 2025
Industry stakeholders anticipate demand recovery from August-September 2025, post-monsoon, as stalled projects resume and states expedite fund releases to meet fiscal year targets under AMRUT 2.0, Jal Jeevan Mission, and Smart City initiatives. Manufacturers have refrained from any upward price revisions, with prices hovering at rock-bottom levels
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