The production of steel pipes is divided into two segments: Electric Resistance Welding (ERW) and ACR Submerged Arc Welding and Seamless (S&S).
The production of steel pipes is one of the important components of the Indian steel industry. It accounts for about 8% of India’s steel use.
The Indian steel pipe market is valued at Rs 50,000-55,000 crores. In value terms, 50% of the market is ERW pipes and 50% is stainless steel and SAW pipes.
Rajesh Mohata, CEO and CEO of JSL Lifestyle, said: “The strong properties of stainless steel, such as its high strength, high temperature. Hospitals, hospitals, hotels and traditional centers. The main needs are drinking water and reverse osmosis pipes.”
In fiscal year 21, the total production of steel pipes has risen in double digits over the past four years and is estimated at Rs 60,000 crore. According to a Credit Analysis and Research (CARE) report, the global steel pipe market is valued at US$90 billion and is expected to grow at a CAGR of 4% over the next three years, while the domestic market is expected to increase by about 9%. -10% off global usage.
Sandeep Bansal, Managing Director of Swastik Pipes, said: “India is now one of the top three steel pipe production centers in the world after Europe and Japan. Demand is growing due to factors such as low production costs, higher productivity and quality, as well as geographic advantages.”
The Covid-19 pandemic has even led to an unexpectedly sharp decline in global financial activity and steel use. In April 2020, monthly production of steel pipes fell by 70,000 tons as production activities were suspended due to the nationwide lockdown.
Mohata said: “In 2020, the Asia-Pacific region accounted for the largest market share, but the Covid 19 pandemic has hampered the development of the market, which has led to changes in the structure of demand and consumption. We have noticed that people are becoming more and more concerned about their health. after the pandemic And be more aware of the environment and the environment. So the steel industry is also in decline like other industries.”
Bansal said: “Like many other industries, even the steel industry has experienced a downturn during the pandemic. We are facing some problems, the demand for GIMS steel pipes has dropped by 30% in a certain period of time. Due to labor shortages, production planning and consumption were affected and there was a significant decline. But the decline is short-term and the impact will not last long.”
In fiscal year 22, business gradually returned to normal and a gradual easing of restrictions was announced to contain the second wave of covid. In addition, the government’s continued efforts to scale up vaccinations, bolster health infrastructure, fight the virus, and other economic measures to get the economy back on a growth trajectory have fueled year-to-date growth in tubing consumption in FY 2022. In the 10 months of fiscal year 22, steel pipe consumption in the country increased by 4% compared to the previous year.
”Stainless steel pipes are becoming more and more popular due to their durability and functionality. They are less susceptible to corrosion and chemical leaching because they do not absorb components of surrounding materials such as lead or copper. Stainless steel is a good alternative to plastic pipes and is steadily becoming a popular choice for projects commercial, industrial and residential real estate We expect 200% growth this year,” Mohata said.
“Metallurgy has quickly recovered from the epidemic and continues to rise to new heights. Recently, both demand and prices have risen, and the number of orders placed by the national government has increased. The government has played a big role in reopening.” – through the Announcement of various schemes and projects such as Jal Shakti Abhiyaan, Nal Se Jal, AMRUT and Namami Gange schemes, Jal Jeevan’s mission to create and increase demand for steel pipes and other products. This gave a huge boost to the development of infrastructure, including roads, railways, etc.,” Bansal said.
It is worth noting that in the WPI index (India Wholesale Prices, April 2022), the weight of steel in the industrial goods category is only 1.27%. WPI of FY22 steel pipe is 129.4. This means that steel and stainless steel prices have a limited impact on the country’s overall inflation.
To this, Mohata added, “Although it is a growing market, the market for plumbing solutions has little effect on the overall inflation in the country due to the small size of the market. It is safe to say that there is no outside influence in terms of sales. clients. , as mentioned earlier, are trained and willing to pay extra for health, hygiene and safety.”
BW Communities is a family of business news sites targeted at niche communities and readers in all industries.
Post time: Mar-02-2023