India’s Pipe Market Steady: DI Demand Strong as MS & ERW Struggle with High Inventories

Key Highlights

• DI pipe demand stays robust amid water-supply projects like JJM, despite widening supply gaps.
• MS ERW demand shows mild recovery, supported by ongoing infra and construction spending.
• High inventories persist, with ERW manufacturers carrying ~30–40% unsold stock.
• New capacities added, including Vibhor Steel’s 1.56 lakh MT ERW/GI plant and Rungta Steel’s entry into DI manufacturing.

Price Overview: Pipes – DI & MS ERW

Price: DI Pipes

• Up to 150 mm Dia: ₹66 per kg
• Above 150 mm: ₹57 per kg

MS Pipe:

• Primary: ₹54–55 per kg
• Secondary: ₹51–52 per kg

MS ERW: Demand Improves but Inventories Remain High

Vibhor Steel Tubes Ltd has commenced commercial supply of Electric Resistance Welded (ERW) and Galvanised (GI) pipes from its greenfield plant at Sundargarh, Odisha.
The new facility adds ~156,000 MTPA (1.56 lakh MT) of capacity and came online in July/August 2025.

DI Pipes: Strong Demand Driven by Water Infrastructure

There is a moderate uptick in MS ERW demand, driven by infrastructure and construction activities as government funding flows into metro projects, utilities, and housing

Supply Landscape: New Capacities & Market Additions

Despite new capacities, the market continues to show high inventory levels in certain segments. For MS ERW, manufacturers reportedly hold ~30–40% unsold stock due to sluggish demand during the monsoon season and delayed project executions.

Rungta Steel Ltd has entered the DI pipe segment with its new manufacturing operation at Chaliyama (Chaibasa), Jharkhand, expanding its portfolio into ductile-iron water and sewer pipelines. DI pipes remain in strong demand, driven by rural and urban water supply schemes such as the Jal Jeevan Mission and other infrastructure projects.
A recent report highlighted that in Maharashtra, DI pipe availability (~4 lakh tonnes) is significantly short of demand (~7 lakh tonnes).

In the DI pipe segment, the challenges relate more to execution, capacity, lead times, and installation timelines than to demand.

Market View: Competitive Edge Shifts to Regional Player

Players with: Strong regional manufacturing footprints (to service local projects and reduce logistics costs), Lean inventory practices, A flexible product mix (ERW, DI, and value-added products), and Disciplined working capital and execution are likely to be better positioned in the current market environment.