India’s Pipe Market Expands Amid Capacity Additions and DI Supply Shortages

Key Highlights

• DI pipes: Strong demand from Jal Jeevan Mission and urban water projects causing supply shortages.
   
• MS ERW pipes: Prices rose ₹2–3/kg on rising infrastructure activity and liquidity.
   
• New capacities: Vibhor (Odisha) and Rungta (Jharkhand) expanding India’s pipe supply base.
   
• Outlook: Firms with lean inventory and flexible operations to benefit as demand recovers.

DI & MS ERW Pipe Prices Strengthen on Infrastructure Demand

Product: Pipes: DI & MS ERW

1. Price: DI Pipe
   Upto 150 mm Dia: Rs. 67 Per Kg
   Above 150: Rs. 58 Per Kg
2. Price: MS Pipe
   Primary: Rs. 57 - 58 Per Kg
   Secondary: Rs. 55 - 57 Per Kg 

Demand & Supply: DI Pipe Supply Strains as Demand Surges from Water Projects

Demand:

• MS ERW: Demand has strengthened amid good liquidity in the market, pushing ERW/MS pipe prices upward by ₹2‑3 per kg in some segments

Infrastructure and construction projects (metro, housing, utilities) are driving increased orders, especially as government funding gets released

• DI Pipes: Across many water supply and rural infrastructure schemes (Jal Jeevan Mission, urban water projects) the need for DI pipes remains high, leading to report of supply shortages in many states

Supply:

• MS ERW: Manufacturers are stocking high inventory (30‑40 % unsold) due to slow demand during the monsoon; many are offering discounts to clear stocks

New capacity is being added: e.g. Vibhor’s Odisha plant is now supplying ERW & GI pipes, expanding supply base in Eastern India

• DI Pipe: DI pipe producers are reportedly operating at full capacity to fulfill backlog / pending bookings, despite weak current demand in some segments

The number of DI pipe manufacturers is limited; current installed capacity often fails to meet the massive demand, exacerbating the supply constraint.

MS ERW & DI Pipes News: New Capacity Additions Boost Pipe Manufacturing Base

• Vibhor Steel has started commercial supply of ERW & GI pipes from its new Odisha greenfield plant (capacity ~1.56 lakh MT).
• Maruti Ispat & Pipes launched its ERW pipe brand MS VAYU, and is planning large capacity investments (6 lakh MT) over 5 years.
• Rungta Steel has entered DI pipe manufacturing at its Chaliyama plant in Jharkhand, expanding its product portfolio
• DI pipe shortages are affecting waterworks and rural projects (e.g. in Nagpur), with supply lagging far behind demand in many regions

Outlook: Lean, Flexible Players Poised to Gain Market Share

• The next 3–6 months will likely see a gradual recovery phase, where companies that position themselves well (with lean inventories, flexible production, regional strength) will capture share as demand returns.
• Cash flow & working capital discipline will distinguish winners — those overleveraged or overextended will suffer if demand remains sluggish longer than expected.
• Localization and regional plants will gain importance. Transport & logistics costs are significant in pipes, so closer-to-site manufacturing gives an edge.
• Hybrid portfolios (i.e., players not limiting themselves to only ERW or DI but offering both or adjacent pipe types) may weather volatility better.
• Early mover advantage: those securing orders and supply chain contracts ahead of the demand upswing will benefit from better margins, while late movers may face supply constraints or price escalations.