Pipe Industry Faces Price Drops Amid Intense Competition
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The pipe market is undergoing a period of price correction due to oversupply and fierce competition, with industry players looking for ways to stay competitive.
Key Takeaways
- Price Pressure: Intense competition is pushing prices down across the board.
- Project Delays: Government projects halted in some regions due to political factors.
- Economic Uncertainty: Market remains unstable, with varied demand across regions.
Pipes Prices
- 100mm K7 DI Pipes: Rs 1340 and Rs. 1380
- ERW: Rs 57500/ton (ex Raipur)
Pipes Demand & Supply Trends
- The pipe industry is experiencing rock-bottom prices, driven by intense competition or market oversupply. However, while government departments in Madhya Pradesh and Gujarat are releasing payments, improving liquidity and potentially stimulating demand, several projects in Maharashtra and Jharkhand have been halted due to the code of conduct, adding pressure to the sector.
- In response to market dynamics, Jaibalaji has increased the production of smaller pipes, likely catering to the rising demand in ongoing infrastructure projects. This strategic move positions the company to capture a larger market share, especially as price corrections may lead to an increase in orders. Despite the short-term challenges, these developments suggest a mixed outlook, with the potential for recovery in certain regions and sectors.
Pipes News
- Tata Steel and Welspun Corp have achieved a significant milestone by developing Hydrogen compliant API X65 grade pipes, which successfully surpassed all necessary service and fracture qualification tests for transportation of 100% pure gaseous Hydrogen under high pressure.
- JSW Steel has signed a joint study agreement with Carbon Clean and BHP to accelerate deployment of carbon capture technology for steelmaking decarbonisation.
Expert Opinion
- Prices are currently under pressure due to increased competition, but the market shows some positive developments. BMC & PMC is rushing to approve several development projects to ensure important public works do not halt before and during the polls, it is adviced to contractors to finalize their tenders to avoid any issues later.
Daily Market Report
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