Pipes Market Faces Liquidity Challenges; Demand Expected to Surge in December
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Pipes prices remain steady, with fluctuations in HDPE and ERW pricing. Demand across key regions like Uttar Pradesh, Madhya Pradesh, and Gujarat is slow due to delayed government payments. In Maharashtra, progress is expected to resume in December. The sector is facing liquidity issues, but demand could surge as contractors push to meet targets.
Key Takeaways
- Pipes Prices: 100mm K7 at Rs 1270-1280, K9 at Rs 1550-1560, ERW at Rs 58,000/mt (ex-Raipur).
- Government Fund Delays: Uttar Pradesh on hold, Madhya Pradesh and Gujarat see slow progress, Maharashtra expects funds in December.
- Pipes Sector Outlook: Demand is expected to rise as contractors push to meet targets despite financial challenges.
- Industry News: Lubrizol and Polyhose join forces for a medical tubing facility, while JTL Industries enters a JV for a railway tender.
- Steel Pipes Prices 100mm K7 : Rs 1270-1280 100 mm K9: Rs 1550-1560
Pipes Demand & Supply
- Under the Jal Jeevan Mission, project updates across states indicate varying progress. In Uttar Pradesh, no payments have been released by the government, resulting in projects being on hold. Madhya Pradesh is experiencing slow fund disbursement, with contractors availing credits and limits to push projects forward despite being charged Liquidated Damages (LD).
- Similarly, Gujarat is facing delays in government fund releases, but private contractors are utilising their own capital to maintain progress. In Maharashtra, fund release is expected by the first week of December following government formation, with Maharashtra Jeevan Pradhikaran (MJP) projects set to resume thereafter.
Pipes News
- Lubrizol, and Polyhose have signed a Memorandum of Understanding (MoU) to create a medical manufacturing site in Tamil Nadu to increase the local medical tubing volume by five-fold, creating easier access to life-saving medical tubing in India and in markets around the world via export.
- JTL Industries Limited has entered into a special purpose Joint Venture agreement with Singla Constructions to jointly participate in a railway tender.
Expert Opinion
- The market faces liquidity challenges due to delayed government payments and election-related slowdowns, impacting Jal Jeevan Mission projects. While UP projects are on hold, MP and Gujarat see slow progress with contractors relying on credits or private capital. In Maharashtra, fund releases and MJP project resumption are expected by early December. However, a demand surge is anticipated as contractors push orders to meet annual targets, potentially boosting the pipes sector in the coming weeks.
Daily Market Report
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