The steel pipe manufacturers are all set to be greatly benefitted from the CAPEX investments by the central and state governments in the sectors such as oil & gas, petrochemicals, and so on.
The steel pipe industry is amongst the top gainers in the stock market as there is huge demand generated by numerous sectors, including oil & gas, petrochemicals, chemicals, construction, infrastructure, and so on.
APL Apollo Tubes Ltd., Maharashtra Seamless Ltd. (MSL), and Venus Pipes & Tubes – the top players in the steel tube and pipe sector – are also among the top stock gainers – as published in media reports.
Notably, the stock demand is majorly driven by strong order books of the steel pipe makers. Since both the central and the state governments have been encouraging water infrastructure projects, the demand for steel pipes is likely to continue being buoyant. Moreover, as India is transitioning from being import-dependent to being self-reliant with regard to oil production, investments in new oil exploration blocks are expected. This will also be a strong demand driver in the steel pipe segment.
At MSL, the order book position has been breaching all-time highs for the past four quarters. The management team is foreseeing a good demand outlook in the export segment in FY23 as enquiries in this segment has crossed 15,000 MT per month.
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APL Apollo registered the highest quarterly sales volume of 6.02 lakh tonnes in Q2FY23, i.e. surged by 41 percent on a yearly basis. The sales volume for the first half of FY23 was 10.25 lakh tonnes as compared to 8 lakh tonnes in the same period last year.