Decline in steel prices, surge in orders, bring happy times for pipe makers

Lower steel prices have helped improve margins while govt's focus on infra development for water, oil and gas has brought a surge in orders for the manufacturers

The profit margins of steel pipe manufacturers are likely to surge in the second half of the current financial year due to a sharp decline in steel prices and surge in orders following government’s increased focus on infrastructure development for transportation of water, oil and gas.

Companies manufacturing steel and other pipes and allied products have reported steady improvement in their profit margins over the last four quarters with around half a dozen leading producers posted 4.6 per cent of cumulative profit margins in the first quarter of financial year 2019-20 from around 2 per cent in the same period