DI Pipe Prices Expected to Rise in January; Potential Coil Duty Hike to Impact ERW Costs

Key Takeaways

• Current Prices: 100mm K7 DI pipes priced at Rs 1,340–1,380; ERW pipes at Rs 58,000/mt.
• Ken-Betwa River Linking Project: A major infrastructure initiative aimed at water resource management and inter-river connectivity.
• Expected Input Cost Hike: A potential 20% coil import duty hike could increase ERW pipe prices by 5-6% in the coming months.
• Market Dynamics: Sluggish demand due to delayed payments and liquidity constraints; fund releases in early 2025 expected to drive recovery.
• Expert Insight: Contractors are advised to take advantage of current low DI pipe prices to prepare for anticipated market revival.

Pipes Price

• 100mm K7 DI Pipes Rs 1340 and Rs 1380
• ERW : Rs 58000/mt (ex Raipur)
• The current price of HDPE (High-Density Polyethylene) Polymer Grains cost : Rs 93/ kg Conversion cost : Rs 10/ kg

Pipes Demand & Supply

• The pipe industry is facing mixed dynamics, with a potential 20% coil import duty hike likely to push ERW pipe prices up by 5-6% in the coming months due to higher input costs. Slow plant inventory movement and delayed site payments are dampening short-term demand, while pending tenders and liquidity constraints are slowing market activity.
• However, prices for DI pipes may rise in January, driven by anticipated fund releases in states like MP, Maharashtra, and Rajasthan, which could also spur demand recovery. Overall, while the current market remains sluggish, improved liquidity and tender clearances are expected to drive a gradual rebound in demand and prices in early 2025.

Pipes News

• Prime Minister Narendra Modi laid the foundation stone for the Ken-Betwa river linking project on December 25, marking the first project under India’s national river interlinking policy. The project, which will cost Rs 44,605 crore, will provide drinking water to 44 lakh people in Madhya Pradesh.
• Pipes and tubes manufacturer Newmalayalam Steel Limited aims to raise INR 41.76 crore through its SME IPO, which is entirely a fresh issue of 46.40 lakh shares, available in the price range of INR 85-90 per share, with no offer for sale component.
• Ken-Betwa River Linking Project: Transferring water from the Ken river to the Betwa river, both tributaries of the Yamuna. The Ken-Betwa Link Canal will be 221 km in length, including a 2-km tunnel. It has two phases. Phase-I will involve building the Daudhan Dam complex and its subsidiary units. Phase-II will involve three components — Lower Orr Dam, Bina Complex Project and Kotha Barrage. It is a project under the National Perspective Plan for interlinking rivers.

Expert Opinion

The market is in a slowdown as contractors face payment delays and halted site procurements, stalling projects. With DI pipe prices at record lows, contractors should seize the opportunity to book materials now, ensuring cost stability and project readiness ahead of anticipated market recovery.