DI Pipe Prices Rise Amid High Demand, ERW Prices Drop Further
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DI pipe prices from all manufacturers rise to Rs. 1,340-1,380 within an 800-mile radius, owing to high demand and overbooking. At the same time, ERW prices have dropped further to Rs. 55,000/ton amid low demand and decreasing costs of raw materials.
Pipes Prices
- Currently, within an 800-mile radius, 100mm K7 DI Pipes from all manufacturers like Tata, Jai Balaji & Electrotherm are priced between Rs. 1340 and Rs. 1380. This increase is attributed to overbooking by suppliers and the exceptionally high demand for smaller diameter pipes, further exacerbating the supply constraints.
- The ERW manufacturers have reduced prices to INR 55,000/t ex-Raipur, excluding 18% GST, due to subdued demand and falling raw material costs. This is a drop of INR 4,000/t from August's INR 59,000/t, following an earlier reduction of INR 2,500/t in early August.
- The current price of HDPE (High-Density Polyethylene) stands at INR 126 per kilogram.
Pipes Demand & Supply
- Rashmi Metaliks has concentrated its efforts on the production of small diameter DI pipes, specifically in the 100-200 mm range, available in both K7 and K9 grades. Currently, they have a sufficient supply of these smaller diameter sections.
- The significant decline in ERW pipe prices has driven demand, with a month-on-month decrease of approximately INR 4,000 per ton.
Pipes News
- Electrotherm (India) consolidated net profit rises 181.31%.
- India's leading electric resistance-welded (ERW) pipe manufacturers are likely to reduce list prices by up to INR 1,000/t ($14/t) in mid-Sept'21 on account of sluggish domestic demand and declining hot-rolled coil (HRC) prices.
- Welspun Corp Limited has approved an investment of approx. US$100 million by its wholly owned subsidiary Welspun Pipes Inc. for the strategic upgradation of the HFIW (High Frequency Induction Welding) Pipes manufacturing and coating capability.
Expert Opinion
DI pipe demand has surged again with the end of the monsoon and the continuation of government projects. However, contractors should consider booking smaller diameter pipes in advance and strategically plan their future orders, taking into account potential disruptions to business operations due to the upcoming state elections.
Daily Market Report
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