DI & MS Pipe Prices at Record Lows; Demand Gains Momentum Amid State Fund Releases

Key Insights:

• Current Prices: DI pipes at Rs 1,340–1,380; ERW at Rs 58,000/mt, and HDPE polymer grains at Rs 93/kg plus Rs 10/kg conversion cost.
• Demand Surge: State fund releases in Rajasthan and Madhya Pradesh are driving higher demand, with Maharashtra expected to follow.
• Supply Availability: Stockpile levels ensure all diameters are readily available, supporting urgent deliveries.
• Surya Roshni Project: Surya Roshni won an Rs 81.47 crore order for BPCL’s City Gas Distribution project.
• Gas Pipeline Expansion: India plans to add 10,805 km to its natural gas pipeline network, boosting nationwide availability.

Pipes Price:

• 100mm K7 DI Pipes: Rs 1340 and Rs 1380
• ERW : Rs 58000/mt (ex Raipur)

Pipes Demand & Supply:

• The market for DI, MS, and ERW pipes has witnessed a resurgence in demand, primarily driven by the small release of state government funds in Rajasthan and Madhya Pradesh. Maharashtra is also expected to follow suit in the coming weeks, with anticipated fund disbursements for various halted projects under MJP.
• On the supply side, prices are currently at an all-time low, creating favorable conditions for buyers. Due to stock pile-ups, all diameters are readily available across plants, ensuring that urgent delivery commitments can be met. This alignment of increased demand and readily available supply is driving renewed momentum in the market.

Pipes News:

• Surya Roshni secured an INR 81.47 crore contract from BPCL to supply API SL PSL2 LPE-coated line pipes (4-16 inches) for a pan-India City Gas Distribution (CGD) project.
• The Ministry of Petroleum and Natural Gas announced a 10,805 km expansion of India’s natural gas pipeline network, advancing the completion of the national gas grid for uniform gas availability nationwide.
• SAIL provided 45,000 mt of steel for temporary structures at Mahakumbh Mela 2025, including pontoon bridges, steel bridges, substations, and flyovers.

Expert Opinion:

• The DI and MS pipe market is currently witnessing all-time low prices due to subdued demand in the last quarter, leading to significant stock accumulation. However, with state government funds being released in Rajasthan and Madhya Pradesh, and Maharashtra expected to follow soon, demand is poised to surge.
• This is likely to result in overbooked manufacturer capacities, delivery delays, and an inevitable rise in prices. Contractors are advised to book their requirements now to lock in low prices and ensure timely deliveries.