Pipes

The pipes market is experiencing increased demand driven by state fund releases in Rajasthan and Madhya Pradesh, with Maharashtra expected to follow. Prices remain at record lows, benefiting buyers. Experts advise contractors to book now to lock in low prices and avoid future delivery delays. Notably, India’s gas pipeline network is set for a 10,805 km expansion.

Current prices for 100mm K7 DI pipes range from Rs 1,340 to Rs 1,380, while ERW pipes are priced at Rs 58,000/mt (ex-Raipur). The industry faces sluggish demand due to delayed payments and inventory buildup, but fund releases in key states may drive demand and price recovery by early 2025.

The pipe market faces significant challenges with low demand and high inventory levels. Prices for DI and MS pipes have hit record lows, and primary manufacturers are struggling with unsold stock. In contrast, strategic opportunities exist for major buyers like government PSUs. Contractors are advised by experts to secure stock amid project delays.

The pipes market is currently facing a slowdown due to delays in releasing funds for the Jal Jeevan Mission, which has caused contractors to pause supplies to project sites. Despite this, prices for pipes like 100mm K7 DI and ERW remain stable. Meanwhile, Tata Steel's warehouse in Jamshedpur has achieved a Net Zero Energy certification.

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.

The pipes market is currently seeing aggressive pricing in the DI segment. However, a price rise is expected in the coming weeks due to anticipated demand growth. The MS and ERW pipe segments have already seen price increases. Despite liquidity challenges, the sector is expected to pick up pace as fiscal year-end approaches.

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.

The price of 100mm K7 DI Pipes is between Rs 1,340 and Rs 1,380, and ERW pipes are currently priced at Rs 57,500 per ton ex-Raipur. The market is currently slow due to liquidity issues, but a surge in demand is anticipated by year-end. Key developments include a government investment of INR 347 crore for green hydrogen projects.

The pipe market is undergoing a period of price correction due to oversupply and fierce competition, with industry players looking for ways to stay competitive.