Pipes Market Faces Aggressive Pricing; Demand Set to Rise
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The pipes market is currently seeing aggressive pricing in the DI segment. However, a price rise is expected in the coming weeks due to anticipated demand growth. The MS and ERW pipe segments have already seen price increases. Despite liquidity challenges, the sector is expected to pick up pace as fiscal year-end approaches.
Key Highlights
- DI pipe prices are stable but set to rise as demand grows.
- MS and ERW prices increased by INR 1,000 due to market dynamics.
- HDPE pipes remain popular due to sustainability and competitive pricing.
- Welspun Corp secures large US pipeline orders, and Viraj Profiles enters the seamless pipe market.
- Delayed payments pose challenges, but demand is expected to increase in the coming weeks.
Pipes Prices
- 100mm K7 DI Pipes: Rs 1340 and Rs. 1380
- ERW: Rs 58000/mt (ex Raipur)
Pipes Demand & Supply Trends
- The current market for DI (Ductile Iron) pipes is witnessing aggressive pricing from major manufacturers like Rashmi Metaliks, ECL, and Jindal, who are offering lower-than-expected prices to capture orders. It is anticipated that prices have reached a baseline, and a further drop in DI pipe prices is unlikely. In the coming weeks, the demand for DI pipes is expected to rise, which could lead to an upward trend in pricing.
- In the MS (Mild Steel) and ERW (Electric Resistance Welded) segments, there has been a notable price increase of approximately INR 1,000, reflecting the supply-demand dynamics in these categories.
- Additionally, HDPE (High-Density Polyethylene) pipe demand has surged due to its sustainability benefits and ideal pricing, making it a preferred choice in various ongoing projects.
Pipes News
- Welspun Corp Limited has won orders worth INR 1,300 crore to supply Helical Submerged Arc Welded (HSAW) pipes for natural gas pipeline projects in the US. The company is set to execute these orders in the financial year 2025-26.
- Viraj Profiles Limited has entered the seamless pipe market with the inauguration of a new advanced piercer mill at its plant in Boisar, Maharashtra, aiming to strengthen its presence in the global stainless steel market.
Expert Opinion
- The market is currently facing liquidity challenges due to delayed payment releases from state and central governments, with additional slowdown attributed to election periods in Maharashtra and Jharkhand. However, a demand surge is anticipated in the coming weeks as contractors are expected to place orders to boost their annual turnover. This upcoming increase in demand could inject momentum into the pipes sector as the fiscal year progresses.
Daily Market Report
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