Pipes Market Update: Stability Prevails Amid Limited Government Funding
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The pipes market remains stable as recent government funding for infrastructure projects in states like Rajasthan, Madhya Pradesh, Odisha, and Jharkhand has fallen short of expectations. Consequently, the anticipated surge in demand for pipes has not occurred.
Key Takeaways
- Unchanged Demand: The release of government funds for infrastructure projects has not met expectations, leading to stable pricing with no significant changes in demand.
- Recent Orders: Welspun Corp has secured two large orders valued at approximately Rs 1,300 crore for coated HSAW pipes for natural gas pipeline projects in the USA, set to be executed in FY26. L&T has also won a contract worth up to $300 million from ONGC.
- Market Outlook: Stability is expected in the market due to the impact of the Diwali holidays and liquidity challenges stemming from delayed government payments.
Pipes Price List
- 100mm K7 DI Pipes: Rs 1340 and Rs 1380
- ERW: 57500/mt (ex Raipur)
Pipes Demand & Supply Trends
- The recent release of government funds in states like Rajasthan, Madhya Pradesh, Odisha, and Jharkhand for infrastructure projects has been below anticipated levels.
- Consequently, the expected uplift in demand for pipes has not materialized as strongly as forecasted. Currently, the market remains stable with no significant shifts in pricing or demand.
- This week will be crucial in assessing any changes in market dynamics, as fluctuations in demand may influence price trends and supply adjustments in the near term.
Pipes News
- Welspun Corp on Monday announced that it has received two large orders in the USA, cumulatively valued at approximately Rs 1300 crore. In a regulatory filing, the company said that the order is for the supply of coated HSAW Pipes for Natural Gas Pipeline Projects. The order, it said, would be executed in FY26.
- Larsen & Toubro (L&T), an Indian multinational engineering and construction company, has secured a contract worth up to $300 million from Oil & Natural Gas Corporation (ONGC), India's state-owned oil and gas giant.
Expert Opinion
- Due to inactivity in plants during the Diwali holidays and a liquidity crunch from delayed government payments, the market remains stable with no price changes. This week will be pivotal in determining whether market demand will pick up.
Daily Market Report
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