Pipe Prices Expected to Surge Amidst Rising Demand

The price of 100mm K7 DI Pipes is between Rs 1,340 and Rs 1,380, and ERW pipes are currently priced at Rs 57,500 per ton ex-Raipur. The market is currently slow due to liquidity issues, but a surge in demand is anticipated by year-end. Key developments include a government investment of INR 347 crore for green hydrogen projects.

Key Takeaways

  • Pipe Prices: 100mm K7 DI Pipes are priced at Rs 1,340-1,380. ERW pipes are at Rs 57,500/ton (ex-Raipur).
  • Market Outlook: Despite current slowdowns, a surge in demand is expected towards year-end due to project ramp-ups.
  • Green Hydrogen Projects: Rs 347 crore invested in pilot projects under the National Green Hydrogen Mission, focusing on low-carbon steel production.

Pipes Current Prices

  • 100mm K7 DI Pipes Rs 1340 and Rs 1380
  • ERW: 57500/ton (ex Raipur)

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Pipes Demand & Supply Trends

  • The current market is experiencing a slowdown due to reduced liquidity, but with the year-end approaching, a surge in demand is expected in the coming months. Contractors should stay prepared for increased activity as projects ramp up, leading to heightened demand for materials like pipes, which may further influence pricing trends.

Pipes News

  • The government has invested INR 347 crore in three pilot projects under National Green Hydrogen Mission. These include a 50 ton-per-day (tpd) plant by Matrix Gas and Renewables Ltd; a 40 tpd plant by Simplex Castings Ltd; and a 3,200 tpd by Steel Authority of India Ltd.
  • Gensol Engineering and Matrix Gas & Renewables are collaborating to develop India’s first and largest green steel production facility. The project, with a total capex of INR 321 crore, will receive 50% capex incentives from the Indian government.
  • Tata Steel is planning to decarbonize its UK sites by building an electric arc furnace for steel production from scrap. The project, costing EUR 1.25 billion, will take 3-4 years, with EUR 500 million contributed by the British government.

Explore more industry insights and pipe news here!

Expert Opinion

  • As November approaches, contractors are urged to finalize quotations as a price increase of Rs 2 per kg is expected for ERW and MS pipes, driven by rising demand and market conditions. The demand for DI pipes is also surging in Madhya Pradesh and Gujarat, with state funds being released for major projects.
  • In Maharashtra, contractors should quickly complete procurement for pending projects due to the Model Code of Conduct being enforced ahead of the assembly elections, which may lead to procurement delays and higher costs in the tightening market.