Monsoon Dampens Pipe Demand as Manufacturers Offer Discounts to Ease Oversupply

Key Highlights:

• DI Pipe Prices at multi-quarter lows: ₹64/kg
• MS ERW Pipe Prices: ₹58–60/kg (Primary), ₹56–58/kg (Secondary)
• Monsoon slows demand across water infra and construction sectors
• Manufacturers offer heavy discounts to move surplus inventory

Latest Pipe Market Prices: DI Pipe & MS ERW Pipe

• DI Pipe (K7 grade)
  • Chaibasa: ₹9,419 per meter
  • General Market Rate: ₹64 per kg
• MS ERW Pipes
  • Primary Grade: ₹58 – ₹60 per kg
  • Secondary Grade: ₹56– ₹58 per kg
  • Secondary HRC Round Pipe (2.2–6mm), Hyderabad: ₹59,000 per MT
  • Rectangular Hollow Section (YST 310, 96x48x3.2mm), Jamshedpur: ₹62,000 per MT
  • Square Hollow Section (YST 310, 100x100x4mm), Jamshedpur: ₹62,000 per MT

Demand Outlook: Weather-Driven Slowdown

As of early July 2025, the Indian market for MS ERW and DI pipes is experiencing demand-supply imbalances, primarily due to seasonal and economic factors.

MS ERW Pipes:
Demand remains sluggish as the monsoon season disrupts construction and infrastructure projects, leading to extended procurement cycles and delayed project execution. Additionally, liquidity constraints in the market have further slowed offtake. On the supply side, while hot rolled coil (HRC) prices have remained relatively stable, manufacturers are responding to weak demand by offering bulk discounts and flexible payment terms—indicative of an oversupplied market.

DI Pipes:
Demand is also subdued, though there has been some pre-monsoon booking for smaller sizes. Major government-led water infrastructure projects like Jal Jeevan Mission and AMRUT are delayed due to rain-induced site closures. On the supply side, DI pipe prices have fallen to multi-quarter lows. To clear excess inventory, manufacturers are offering steep discounts and flexible payment options, again highlighting an oversupply condition.

Industry Updates: Strategic Moves by Key Players

• Rungta Steel announced its entry into ductile iron (DI) pipe production at its Chaliyama Steel Plant in Jharkhand. This move aims to strengthen its presence in the infrastructure sector.
• Surya Roshni secured a fresh order worth ₹75.40 crore from Gujarat Gas for the supply of 3LPE-coated ERW steel pipes (API 5L Grade X52 specifications), to be executed over 34 weeks.
• Sambhav Steel Pipes & Tubes Ltd. made a strong entry on the stock exchange, listing at a 34% premium over its issue price. The company’s IPO saw robust investor interest, being oversubscribed by 21 times. Following this successful debut, the company is now exploring capacity expansion to meet rising market demand.
• Indian steel pipe manufacturers are poised to benefit from Saudi Arabia’s recent imposition of anti-dumping duties on imports from Taiwan and other countries.
• Jindal SAW Ltd., a leading Indian manufacturer of steel pipes catering to energy, transport, and water infrastructure, has announced a $118 million investment in a new facility in Abu Dhabi. 

Expert Take: Tactical Buying Season

• For Buyers: Make the Most of the Slowdown, Get Ready for the Rise.

Take advantage of the current stable-to-declining prices and attractive discounts during the monsoon-induced slowdown to build inventory. A sharp recovery in demand is expected post-monsoon, fueled by renewed momentum in government infrastructure projects—position yourself early to benefit from the surge.

• For Suppliers: Streamline Inventory, Prepare for Momentum.

Use this phase to optimize stock levels by offering timely incentives to stimulate movement. Simultaneously, ramp up production planning and secure raw materials to meet the anticipated spike in demand from August–September, when construction and project activity is set to accelerate.