DI Pipe Prices Crash as Fund Delays Bite; ERW Holds Steady

Key Takeaways

• DI Pipe Prices Dip Sharply: Liquidity crunch and weak demand push DI pipe prices to new lows across multiple regions. 
• ERW Segment Steady: Mild Steel and ERW pipe prices remain stable, backed by consistent demand and smooth supply. 
• Government Delays Impact Demand: Project fund hold-ups under schemes like JJM are stalling pipe procurement activity. 
• Strategic Buying Opportunity: Current low prices in DI pipes may benefit buyers planning future projects. 
• Capacity Expansions Continue: VSTL and JTL Industries announce major additions to their GI and DFT-enabled pipe capacity.

Pipes Price

• 100mm K7 DI Pipes: Rs 1160-1200
• 100mm K9 DI pipes: Rs 1300-1350
• ERW:  
• 25nb- 100 nb: Rs 55,000 ( ex Raipur) secondary market
• 25nb -100 nb: Rs 61,000 ( ex Raipur) primary market
• The current price of HDPE (High-Density Polyethylene) are:
• Polymer Grains cost : Rs 80/ kg
• Conversion cost : Rs 10/ kg

Pipes Demand & Supply

• The Ductile Iron (DI) pipe market is currently facing a liquidity crunch, leading manufacturers to book orders at significantly lower prices. This price correction is primarily due to a demand slowdown observed during the months of April and May. A key factor contributing to the sluggish demand is the delayed release of anticipated funds from government projects, particularly under the Jal Jeevan Mission (JJM) and various irrigation departments. While Madhya Pradesh (MP) has released some funds in the last month, the overall market sentiment remains weak, with limited activity across other states.
• In contrast, the Mild Steel (MS) and Electric Resistance Welded (ERW) pipe segment is witnessing stable demand with no major fluctuations. Prices in this category have remained relatively consistent, backed by steady consumption and absence of any significant supply-side disruptions.
• Overall, while the DI pipe segment remains under pressure due to tight liquidity and delayed government spending, the MS/ERW segment continues to show resilience.

Pipes News

• Vibhor Steel Tubes inaugurates GI manufacturing plant in Telangana. The new Galvanizing Iron (GI) manufacturing plant at Balanagar in Mahbubnagar district will increase VSTL’s capacity in Telangana from 24,000 MTPA to 48,000 MTPA.
• JTL Industries plans to expand its capacity by 50,000 MTPA at its Mangaon plant. JTL Industries has completed the installation of DFT at Mangaon plant in Maharashtra. The Mangaon plant currently has a total installed capacity of 4,50,000 MTPA, which includes 2,50,000 MTPA with DFT already in place. An additional 50,000 MTPA of DFT-enabled capacity is being added, bringing the total DFT-enabled capacity to 3,00,000 MTPA.

Expert Opinion

• With DI pipe prices hitting rock bottom due to early monsoons, weak demand, and delayed payment releases from government departments, this period presents a strategic opportunity for contractors.
• Those with visibility on upcoming requirements should consider advanced booking to capitalize on the current low price levels. As funds begin to flow—like the recent release in MP—prices are likely to firm up, making this a favourable window for procurement.