Strong Demand Pushes ERW/MS Pipe Prices Higher Amid Market Liquidity

Key Takeaways

• ERW/MS Pipe Price Rise: Prices have increased by Rs 2-3 per kg due to strong demand and high market liquidity.
• DI Pipes at Full Capacity: Manufacturers are operating at peak levels to meet procurement requirements for March project completions.
• Stable DI Pipe Pricing: Despite high demand, manufacturers are keeping prices steady to accelerate dispatches and project finalization.
• Industry Expansion: Lloyds Metals received approval for a major wire rod and pellet plant, while Prince Pipes started commercial production in Bihar.
• Contractors’ Advisory: Experts suggest securing orders this week to avoid delays, as demand surges before financial year-end.

Pipes Price

• 100mm K7 DI Pipes: Rs 1340 and Rs. 1380
• ERW : Rs 58000/mt (ex Raipur)
• The current price of HDPE (High-Density Polyethylene) 
• Polymer Grains cost : Rs 93/kg
• Conversion cost : Rs 10/kg

Pipes Demand & Supply 

• The pipes market is witnessing high liquidity, leading to an increase in ERW/MS pipe rates by Rs 2-3 per kg due to strong demand. Ductile Iron (DI) pipe manufacturers are operating at full capacity as they fulfill procurement requirements for pending projects closing in March.
• Despite the surge in demand for DI pipes, manufacturers have opted to maintain stable pricing rather than adjust rates to match supply-demand dynamics. This strategy appears to be aimed at maximum acceleration of dispatches of inventories and ensuring timely project completions.

Pipes News 

• Lloyds Metals and Energy Limited have received environmental clearance from the Ministry of Environment, Forest, and Climate Change to establish a 1.2 million mt per annum wire rod project and a 4 million mt per annum pellet plant in Maharashtra.
• Prince Pipes has commenced commercial production in Bihar. The state-of-the-art manufacturing unit, having capacity to manufacture around 24,000 MTPA of PVC and CPVC pipes & fittings in its first phase, will cater to the Eastern region, one of the fastest-growing markets in the country.

Expert Opinion

With contractors rushing to finalize pending projects and secure billing within March, the market is experiencing high liquidity. Given the current demand surge, contractors are advised to book their orders and secure timely supply within this week. Delaying procurement may lead to last-minute bottlenecks, impacting project timelines and deliveries.