India: ERW patra pipe prices drop by up to INR 500/t w-o-w

ERW Patra pipe prices (41-60 OD) declined by around INR 100-500/t in key domestic markets under assessment this week. Volatility in raw material prices led to a decline in pipe prices during the week.

In Raipur, prices fell by around INR 100/tonne (t) w-o-w as on 17 January 2025. Prices in Punjab's Mandi Gobindgarh dropped by INR 500/t w-o-w on 17 January.

Traders in the market complained about a drop of 15-18% in their sales volumes in January as against December 2024, confirming low buying interest in both markets.

Weekly prices

Continuing to decline for the second week in a row, there was a notional price drop in Raipur this week while it was comparatively steep in Mandi Gobindgarh.

Raipur: Prices dropped by INR 100/t w-o-w on Friday to INR 40,300/t from INR 40,400/t on 10 January. Pipe prices, however, had risen up to INR 40,500/t on 16 January before starting to decline.

Mandi: Prices stood at INR 42,900/t on Friday, decreasing by INR 500/t from INR 43,400/t on 10 January.

Daily prices

Prices dropped by INR 200/t in Raipur d-o-d, and by INR 100/t in the Mandi Gobindgarh market as on 17 January 2025.

Raw materials price impact

HR strip (patra) prices fell by INR 200/t w-o-w to INR 40,300/t exw-Raipur as on 17 January compared to INR 40,400/t on 10 December. Meanwhile, patra prices in Mandi fell by INR 500/t w-o-w t0 INR 42,900/t exw-Mandi Gobindgarh.

Billet prices were assessed at INR 38,700/t exw-Raipur as on 17 January, unchanged compared to 10 January. During the week prices had touched a high of INR 39,000/t exw-Raipur on 14 January before retreating. Meanwhile, billet prices in Mandi Gobindgarh closed at INR 41,900/t DAP, unchanged against 10 January. Before starting to retreat, billet prices in Mandi Gobindgarh had increased to INR 42,200/t DAP on 14 January.

Outlook

The ERW patra pipe market in India has remained under pressure amid volatility in raw material prices and low buying appetite. Market participants opine that demand should improve with the approaching fiscal year-end which might trigger demand from the construction business segment and, in turn, lend some support to prices.