Monsoon Dampens MS ERW & DI Pipe Demand; Inventory Pressures Mount Amid Delayed Projects

Key Takeaways

• Muted Demand Across Segments: Demand for both MS ERW and DI pipes remains weak due to monsoon delays and stalled infrastructure disbursements.
• High Inventories in MS ERW: Manufacturers are facing 30–40% unsold stock and are offering bulk discounts to reduce inventory levels.
• Steady DI Pipe Production: Despite low demand, DI pipe makers are running at full capacity to fulfill prior bookings, with extended lead times in some regions.
• New Launch by Maruti Ispat: Maruti Ispat has launched a new ERW steel pipe brand, MS VAYU, to strengthen its market presence.
• Tata Metaliks Expands Portfolio: Tata Metaliks is expanding its DI pipe range up to 1200 mm, expecting a demand rebound after the monsoon season.

Pipe Prices (as of July 2025)

• DI Pipe:
  • Dia 100–150 mm: ₹74–75/kg
  • Dia 200 mm & above: ₹61/kg
• MS ERW Pipe:
  • Primary: ₹57,000–58,000/ton
  • Secondary: ₹54,000–55,000/ton

Pipes Demand & Supply Overview

• MS ERW: The MS ERW pipe market in India is currently experiencing a supply-demand imbalance. Demand remains weak due to monsoon-related construction slowdowns, delayed government payments, and subdued private sector activity. 
  On the supply side, manufacturers are holding 30–40% of unsold stock, prompting them to offer discounts and accept bulk orders at reduced prices. Although supply is steady, market sentiment is cautious. 
  A recovery is expected around August–September when infrastructure work resumes and government tenders (e.g., under Jal Jeevan Mission and Smart City) are released.
• DI Pipe: A seasonal slowdown continues with site delays, halted excavations, and slow fund disbursement. 
  While demand is subdued, pre-monsoon stocking in May drove strong orders for smaller 100 mm/150 mm pipes, though activity eased in June.
  Manufacturers are operating at full capacity to fulfill pending bookings. In some regions, lead times have lengthened due to raw material constraints.

Pipes News

• Maruti Ispat & Pipes Pvt. Ltd. (MIPPL) has launched a new ERW steel pipe brand, MS VAYU, as part of its expansion strategy.
• Tata Metaliks is expanding its DI pipe offerings to include diameters up to 1200 mm, anticipating a surge in demand post-monsoon.

Expert Opinion

Experts advise buyers to take advantage of the current low price levels in both DI and MS ERW segments to lock in volumes ahead of the anticipated demand recovery in August–September. For suppliers, the priority should be inventory liquidation and securing early orders, as market conditions are expected to improve once monsoon disruptions ease and project funding resumes.