India: ERW patra pipe prices decline in key markets amid sluggish demand

Electric resistance welded (ERW) patra pipe (41-60 OD) prices declined w-o-w in both Raipur and Mandi Gobindgarh amid a slowdown in finished steel demand in both markets due to which a decline in trading activities was seen in these markets compared to last week. On a d-o-d basis, on 11 October, prices decreased by INR 400/tonne (t) in Raipur, but remained stable in Mandi Gobindgarh on 11 October.

Current pipe prices are INR 43,300/t in Raipur and INR 45,500/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly average prices

Both locations reported a decline in prices this week as compared to last week.

Raipur: Prices dropped by INR 1,200/t w-o-w on Friday to INR 43,300/t from INR 44,500/t on 4 October. Decline in trading activities was seen in Raipur due to a slowdown in finished steel demand. Trade volumes of around 2,000 t were recorded this week.

Mandi: Prices decreased by INR 300/t to INR 45,500/t on Friday from INR 45,800/t, a week ago. Trading activities in patra-based pipes in the market remained dull and trade volumes of around 1,000 t were recorded this week.

Demand drop amid sluggish sales

Despite price cuts offered in both markets, sales remained sluggish. This weak response is likely due to lower consumer demand and already sufficient inventory levels.

Raw materials price impact

In addition, ERW patra pipe prices fell in response to declining raw material costs. Prices of key raw materials like hot-rolled strip (patra) and billets declined w-o-w in both Raipur and Mandi.

HR strip (patra) prices decreased by INR 1,200/t w-o-w to INR 42,800/t exw Raipur as on 11 October compared to INR 44,000/t exw Raipur on 4 October. Similarly, patra prices in Mandi dropped by INR 400/t w-o-w to INR 44,600/t as against INR 45,000/t a week ago.

Billet prices in Raipur decreased by INR 1,000/t w-o-w to INR 40,900/t exw Raipur on 11 October. However, billet prices in Mandi inched down by INR 100/t w-o-w to INR 43,900 exw-Mandi compared to INR 44,000/t last week.

Outlook

The ERW patra pipe market in Raipur and Mandi Gobindgarh is currently experiencing a slowdown due to declining finished steel demand. Despite a slight improvement in demand in Mandi Gobindgarh towards the end of the day, overall demand remained weaker compared to the previous week.

Overall, the market outlook for ERW patra pipes in both regions appears uncertain, with potential for further price adjustments based on future demand and raw material trends.