Pipe Market Sees Strong Demand as Financial Year-End Approaches

Key Takeaways

• High Demand for DI & MS Pipes: Manufacturers are fully booked, with contractors placing bulk orders before March-end.
• Steady Prices Despite Order Surge: Prices remain unchanged to ensure smooth supply chain operations.
• Major Industry Deals: Maharashtra Seamless, Welspun Corp, and Supreme Industries secure large orders, boosting market activity.
• SAIL Expansion Plans: Rourkela Steel Plant to double capacity, enhancing supply for key industries.
• Urgent Orders Recommended: Contractors should finalize purchases this week to avoid supply chain congestion next week.

Pipes Price

• 100mm K7 DI Pipes: Rs 1340 and Rs 1380
• ERW: Rs 58000/mt (ex Raipur)
• The current price of HDPE (High-Density Polyethylene) 
• Polymer Grains cost : Rs 93/kg
• Conversion cost : Rs 10/kg

Pipes Demand & Supply 

Currently, all DI pipe manufacturers are fully booked until March, but with the financial year-end approaching, there is a strong push from the manufacturing side to dispatch maximum material. This surge in demand for DI and MS pipes is driven by contractors rushing to close pending project procurements before March-end. The market is witnessing high liquidity and increased order flow, yet manufacturers have not raised prices, ensuring a smooth supply chain to meet demand efficiently. The collective goal remains to finalize all procurement within this financial year.

Pipes News

• Maharashtra Seamless Bags INR 298 Crore Order for Seamless Pipes Supply: This year, the company has dispatched 324,000 mt of seamless pipes in nine months and will dispatch around 435,000 mt of seamless pipes in the entire financial year, which gives a volume growth of around 7 to 8% on a year-on-year basis.
• Welspun Corp Secures INR 2,400 Crore Order for Coated Pipes Supply in the US: The orders will largely be executed in the financial years 2026 and 2027, supplying coated pipes for natural gas pipeline projects in the US.
• Supreme Industries has signed a memorandum of understanding with Wavin Industries to acquire its pipes and fittings business for $30 million (about Rs 262 crore), the company said on Tuesday. The process is expected to be completed by June, subject to regulatory approvals.
• State-owned SAIL has plans to more than double the capacity of its Rourkela Steel Plant (RSP) to around 9 million mt per annum at an investment of Rs 30,000 crore, a move which will boost supplies to sectors like defence, oil & gas, automobiles among others.

Expert Opinion

• In the last two weeks of the financial year, there is a significant push on the supply side as contractors rush to place orders with manufacturers to complete their commitments within this month. This surge has led to increased cash flow and liquidity in the pipes market, prompting manufacturers to raise prices while still accepting orders at the same rate. The primary objective for manufacturers is to maximize their billing cycle within this financial year to boost turnover.
• Given the expected congestion in supply and dispatch operations next week, contractors are strongly advised to finalize their pending orders this week to avoid potential delays.