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West Asia pipeline push boosts Indian steel pipe makers
Welspun expects strong Saudi line-pipe demand over the coming weeks, months, and years, and several peers have outperformed this year amid the shift toward safer routes.
Geopolitical tensions in West Asia are pushing countries to favor safer ways to move oil and gas, including investment in new and expanded pipelines that bypass vulnerable maritime routes, according to LiveMint Markets.
The shift is creating demand for steel pipes and tubes used in oil and gas transportation, water infrastructure, and city gas distribution, with Indian manufacturers including Welspun Corp, Jindal Saw, Man Industries, and Ratnamani Metals expanding their presence in the region.
Welspun management said in its Q1FY27 earnings call that its outlook for Saudi Arabia is “very encouraging,” citing expected demand buildout for line pipes supported by recent geopolitical developments.
LiveMint Markets also notes that Jindal Saw said rising risks across the Middle East and North Africa are encouraging investment in overland energy infrastructure designed to reduce dependence on routes such as the Strait of Hormuz, and that the theme is reflected in share performance: Welspun is up 133.0% year to date, Jindal Saw up 59.0%, and Man Industries up 52.0%, while Ratnamani Metals and Tubes is down 1.3% over the period, largely tied to weak earnings.