Pipe Market at a Turning Point: Stabilized Prices, Rising Demand & Key Industry Developments

Key Highlights:

• DI Pipe Prices Stabilizing: Prices for 100mm K7/K9 DI pipes are ₹1,100 and ₹1,380, with further declines unlikely.
• Supply & Pricing Strategies: Major manufacturers compete aggressively to secure orders.
• Industry News: Welspun secures a ₹3,000 crore order for US gas projects.
• Market Outlook: Prices are expected to rise as government fund inflows materialize.

DI Pipe Prices Stabilize, Further Declines Unlikely

• 100mm K7/K9 DI Pipes 1100 and Rs. 1380
• ERW: 58000/t (ex Raipur)

Pipe Demand Rebounds with Seasonal Growth

The DI (Ductile Iron) pipe market is witnessing aggressive pricing strategies from major manufacturers like Rashmi Metaliks, ECL, and Jindal, who are offering lower-than-expected rates to capture orders. Prices seem to have stabilized at their lowest point, with further declines unlikely. While demand is anticipated to rise in the coming weeks, it remains subdued due to continued delays in government fund disbursements. Meanwhile, HDPE (High-Density Polyethylene) pipe demand has rebounded from previous lows as the season gains momentum, driven by its cost-effectiveness and sustainability advantages, making it a favoured choice for ongoing projects.

Major Industry Developments & Key Contracts Awarded

• Welspun Secures Rs 3,000 Crore Pipe Supply Order for Natural Gas Projects in US: The orders include two major contracts for helical submerged arc welded (HSAW) pipes and additional orders for high-frequency inducted welded (HFIW) pipes. Welspun Corp Limited’s consolidated order book has reached approximately INR 18,000 crore.
• MAN Industries Secures INR 250 Crore Pipe Supply Contract; Order Book at Rs 2,900 Crore: The order is expected to be delivered in the next 6-12 months. With the latest contract, the total unexecuted order book of MAN Industries has reached around INR 2,900 crore
• Indian Steel Association Expresses Concern Over Tariffs Imposed by US on Steel Imports: ISA President Naveen Jindal urged the government of India to push for the removal of long-standing ADD & CVD duties and secure exemptions from restrictive measures imposed by the US.

Market Outlook:

Rising Prices & Strategic Buying Opportunities: The pipe market is at a turning point, with prices rising amid increasing demand and anticipated government fund inflows. However, project execution remains largely stalled due to prolonged delays in fund disbursement, affecting contractor payments and timelines. Manufacturers are revising quotes upward, making this a crucial window for contractors to secure materials before further price hikes. With demand expected to gain momentum once government funds are released, pre-booking at current rates could provide a strategic advantage.