Steel Pipe Sale Expected to Grow with Implementation Various of Govt. Schemes

Steel Pipe Prices

• In the MS (Mild Steel) market, ERW (Electric Resistance Welded) pipes, secondary brands at YST-210 grade are priced starting from Rs. 56500 per ton, while primary brands command Rs. 59500 per ton.
• There is an increase in price in the secondary market due to heightened demand for ERW pipes. Additionally, there is an extra charge of approximately Rs. 2 per kg for YST-310 grade due to the heightened demand for ERW pipes, with further price increases anticipated in the coming months.
• Jindal Star has started the manufacturing of the new slot of 600 NB ERW pipes. The ongoing high demand for DI (Ductile Iron) pipes is significantly driving up prices, particularly for smaller diameters ranging from 100mm to 250mm, which are now in short supply. The scarcity has become so severe that manufacturers have ceased providing prices for these sizes.
• Within an 800-mile radius, the cost of 100mm K7 DI pipes ranges from Rs. 1320 to Rs. 1360 across all manufacturers. This price surge is primarily due to suppliers being overbooked and an unprecedented spike in demand for smaller-diameter pipes.

Steel Pipe Demand & Supply

• Estimating costs for ductile iron pipes, particularly in smaller diameters like 100, 150, and 200 K7, proves challenging amidst overscheduling and capacity constraints, exacerbated by the heightened focus on producing larger diameter pipes, intensifying resource strain.
• Simultaneously, lead times for MS-Spiral Pipes are lengthening due to delays in rolling raw materials, with suppliers foreseeing potential delivery delays despite reserving large orders. In response, APL Apollo has increased steel pipe production to meet market demands, aiming to mitigate the pressure caused by supply chain constraints and escalating demand.
• Furthermore, amidst water shortages in several Indian districts, the government plans to implement various water DI pipeline irrigation projects, further propelling the demand for pipes and highlighting the critical need for efficient production and supply chain management.

Steel Pipe News

• Hi-Tech Pipes bags Rs 100 cr pipe supply order from renewable energy sector, plans to raise Rs 600 cr.
• Tata Steel and Welspun Corp have jointly developed hydrogen-compliant grade steel pipes for transportation of the gaseous hydrogen.

Expert's Opinion

• The ERW (Electric Resistance Welded) pipe prices, which were at a year-low during the monsoon, are now beginning to pick up. The end of the monsoon also coincides with implementation of various government schemes like AMRUT, the National Rural Drinking Water Program, and Swachh Bharat Abhiyan, which will further drive the growth in sales of DI pipes.
• As the monsoon season comes to an end, the supply of DI (Ductile Iron) pipes is expected to improve. However, with the increase in demand—particularly for smaller diameter pipes—manufacturers are likely to become overbooked, leading to potential delivery delays. Contractors are advised to plan their purchases and requests well in advance to account for these delays.
• Prices for DI pipes, which have already increased due to limited availability during the monsoon months expected to increase further as demand surges.