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India: ERW patra pipe prices drop w-o-w amid slow trade activities in key markets

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BigMint Bureau

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15 Jun 2024, 12:57 IST

India: ERW patra pipe prices drop w-o-w amid slow trade activities in key markets

ERW patra pipe (41-60 OD) prices dropped w-o-w in both Raipur and Mandi Gobindgarh amid sluggish market demand and trade activities for finished steel in both the markets. In addition, declining raw material prices in the key markets pushed pipe prices down. Furthermore, prices saw a decrease of INR 100/tonne (t) d-o-d on 14 June 2024 in Raipur and by INR 200/t d-o-d in Mandi Gobindgarh.

Current steel prices are INR 47,300/t in Raipur and INR 48,400/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly price decline:

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

Raipur: On a w-o-w basis, prices decreased by INR 700/t on Friday to INR 47,300/t from INR 48,000/t on 7 June. Trade volumes of around 4,500 t were recorded for patra pipe in Raipur this week. The current slowdown in demand and the possibility of future price decreases have had significant impact on trading activity.

Mandi: Prices fell by INR 900/t to INR 48,400/t on Friday from INR 49,300/t on 7 June. Trades in patra-based pipes were recorded around 1,200 t this week.

Demand-price drop:

While demand for both finished and semi-finished steel slightly declined last week, there has been a noticeable slowdown in activity this week. Despite the decrease in prices, buyers have refrained from negotiating as they anticipate further price reductions.

Raw material price impact:

Prices of key raw materials like hot-rolled strip (patra) and billets have increased significantly in both Raipur and Mandi compared to the last week.

HR strip (patra) prices decreased by INR 700/t w-o-w to INR 46,800/t exw Raipur as on 14 June compared to INR 47,500/t exw Raipur on 7 June. Similarly, patra prices in Mandi dropped by INR 1,100/t w-o-w to INR 47,400/t as against INR 48,500/t a week ago.

Billet prices in Raipur have decreased by around INR 1,200/t w-o-w to INR 43,100/t exw Raipur on 14 June compared to INR 44,300/t exw Raipur a week back. Moreover, billet prices in Mandi went down by INR 1,100/t w-o-w to INR 46,000 exw on Friday compared to INR 47,100/t a week back.

Outlook:

ERW patra pipe prices in Raipur and Mandi Gobindgarh are expected to remain under pressure in the near future due to a slowdown in demand and falling raw material prices.