Aug 27: Propped up by anti-dumping duties and domestic value addition caveats, the Indian pipe manufacturing industry is undergoing an unprecedented boom.
8The industry, monopolized by a handful of well-connected manufacturers, have seen realization go up by about 50% for every MT of sale. EBIT on pipes have more than doubled
8Clearly, all of this is at the expense of the domestic oil & gas industry
8But despite all the controls, the Chinese are still trying to compete. So what this means is that the cost curve for pipes for the oil & gas industry has gone up on account of protective measures.
8Ironically, low prices quoted by Chinese manufacturers helped the oil & gas industry to lower costs. The effort was subsidized by the Chinese economy.
8With dumping duties and other restrictions, the Chinese subsidy has now turned into a domestic premium, with the money being transferred from the oil and gas sector to domestic pipeline makers
8All of this has happened without a murmur of protest from any quarters.
8Domestic pipe manufacturers are expected to reap record profits in the current year and 2019-20, the prediction goes.
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