Pipe Prices Expected to Rise as Financial Year-End Drives Demand

Key Takeaways

• Pipes Price Trends: Pipe prices are climbing, with demand expected to push them higher in the coming weeks.
• Year-End Demand: Contractors are rushing to complete projects, driving increased orders for pipes.
• Market Supply: Major manufacturers have filled order books, limiting supply and reducing bulk discount availability.
• Maharashtra Debt Crisis: Contractors threaten to stop work over Rs 1 lakh crore in unpaid dues. Expert Forecast: A significant price surge is likely in the third and fourth weeks of March.

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

As the financial year-end approaches, pipe prices are expected to rise due to increasing demand. With contractors finalizing pending projects, the market is witnessing a surge in orders. Major manufacturers like Electrotherm, Jindal, and Electrosteel have already secured substantial order books for March, further tightening supply. Despite this, bulk discounts are still available on large-volume purchases, indicating that manufacturers are keen to push sales before the fiscal close. Given the rising demand and limited production capacity, an upward price trend appears imminent in the coming weeks.

Pipes News

• Due to outstanding debts totaling Rs 1 lakh crore, contractors engaged in development projects around the state have threatened to halt work from Wednesday. Following the implementation of the Ladki Bahin program in July 2024, government departments began to fall behind on payments. The Maharashtra State Contractors Association (MSCA) has warned that any additional delays will put nearly 300,000 contractors and the 3 crore people who depend on them in financial jeopardy.

• The Minister of State for Home (Urban) and Rural Development refuted the allegations of negligence, claiming that the electoral code of conduct was to blame for the delays. He pledged that the next budget session would handle payments. Additionally, PWD Minister Shivendra Raje Bhosle affirmed that discussions are taking on with the finance department and that the money will be disbursed in stages. The Public Works Department owes the government Rs 46,000 crore, Jal Jeevan Mission Rs 18,000 crore, Rural Development Rs 8,600 crore, Irrigation Department Rs 19,700 crore, and Urban Development Rs 17,000 crore.

Expert Opinion

March is set to be a critical month for price fluctuations, with a potential surge anticipated in the third and fourth weeks. As contractors rush to finalize their projects within the current financial cycle, demand is expected to peak, driving prices upward.