Infrastructure Push Drives Pipe Demand Amid Supply Constraints in DI Segment

Key Highlights

1. DI pipe prices steady at ₹67/kg (≤150mm) and ₹58/kg (>150mm).
2. MS ERW pipe prices rise ₹2–3/kg on stronger infrastructure demand. 
3. Vibhor and Maruti Ispat expand ERW capacity; Rungta enters DI segment. 
4. DI pipe shortages continue to impact water projects in several states.

DI and MS ERW Pipe Prices Steady with Mild Upward Bias

DI Pipes

• Up to 150 mm Dia: ₹67 per kg
• Above 150 mm Dia: ₹58 per kg

MS Pipes

• Primary: ₹55–56 per kg
• Secondary: ₹52–53 per kg

Construction Activity and Water Projects Drive Pipe Demand Shift

MS ERW:

• Demand has strengthened amid good liquidity in the market, pushing ERW/MS pipe prices upward by ₹2–3 per kg in certain segments. 
• Infrastructure and construction projects (metro, housing, utilities) are driving increased orders, particularly as government funding is being released. 
• Manufacturers are holding high inventories (30–40% unsold) due to slow demand during the monsoon season, with many offering discounts to clear stocks. 
• New capacity additions, such as Vibhor’s Odisha plant, have expanded the supply base in Eastern India.

DI Pipes:

• Across multiple water supply and rural infrastructure schemes (such as Jal Jeevan Mission and various urban water projects), the demand for DI pipes remains high, leading to reports of supply shortages in several states. 
• DI pipe producers are reportedly operating at full capacity to fulfill backlogs and pending bookings, despite weak demand in some regions. 
• The number of DI pipe manufacturers is limited, and the current installed capacity often falls short of the massive demand, worsening supply constraints.

Market News: Capacity Expansions and Supply Gaps Shape India’s Pipe Market

• Vibhor Steel has started commercial supply of ERW & GI pipes from its new greenfield plant in Odisha, with a capacity of approximately 1.56 lakh MT.
• Maruti Ispat & Pipes has launched its ERW pipe brand MS VAYU, and is planning significant capacity expansion of around 6 lakh MT over the next five years.
• Rungta Steel has entered the DI pipe manufacturing segment at its Chaliyama plant in Jharkhand, expanding its product portfolio.
• Shortages of DI pipes are affecting waterworks and rural projects (e.g., in Nagpur), with supply lagging far behind demand in several regions.

Expert Opinion: DI Pipes Face Supply Strain While MS ERW Demand Gradually Improves

• The MS ERW segment is showing early signs of recovery but still faces challenges related to inventory and demand timing. Price increases have been modest, driven mainly by raw material costs and infrastructure activity.
• The DI pipe segment is more supply-constrained than demand-constrained — meaning the primary challenge lies in execution rather than market appetite. Price leverage continues to exist in tight-supply situations, especially for standard sizes and high-spec grades.
• Across both segments, companies that combine regional manufacturing presence, lean inventory, flexible product mix, and strong working capital discipline are likely to be the best positioned for growth.