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

Prices of electric resistance welded (ERW) patra pipes (41-60 OD) dropped w-o-w in both Raipur and Mandi Gobindgarh amid sluggish demand and trade activities for finished steel in both markets. In addition, declining raw materials prices in key markets pushed pipe prices lower.

The steel market is experiencing a slowdown. Demand for both finished and semi-finished steel products have weakened considerably this week after a slight decline last week. Despite falling prices, buyers are holding off on purchases, anticipating further price reductions.

However, prices saw an increase of INR 300/tonne (t) d-o-d on 25 October in Raipur and remained stable d-o-d in Mandi Gobindgarh. Current steel prices are INR 41,800/t at Raipur and INR 43,800/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly and monthly average prices:

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

Raipur: On a w-o-w basis, price decreased by INR 1,100/t w-o-w on Friday to INR 41,800/t from INR 43,000/t on 18 October. The current slowdown in demand and the possibility of future price decreases have had significant impact on trading activity. However, prices increased on Thursday, in the evening, due to some improvement in demand for finished steel. This led to higher offers on Friday morning, but demand subsequently slowed down.

In addition, monthly average prices of patra based pipes rose by INR 2,000/t to 43,300/t in October against INR 41,300/t in September 2024.

Mandi: Prices went down by INR 1,900/t w-o-w to INR 43,800/t on Friday from INR 45,700/t on 18 October. The market was sluggish this week due to softer demand for finished steel. Buyers adopted a cautious approach, purchasing only sufficient volumes to meet immediate needs.

However, monthly average prices of patra based pipes increased by INR 2,000/t to 45,500/t in October against INR 43,500/t in September 2024.

Raw material price impact:

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

HR strip (patra) prices decreased by INR 1,100/t w-o-w to INR 41,300/t exw Raipur as on 25 October compared to INR 42,400/t exw Raipur on 18 October. Similarly, patra prices in Mandi dropped by INR 2,100/t w-o-w to INR 42,800/t as against INR 44,900/t a week ago.

Billet prices in Raipur have decreased by around INR 1,600/t w-o-w to INR 39,400/t exw Raipur on 25 October compared to INR 41,000/t exw Raipur a week back. Moreover, billet prices in Mandi also went down by INR 1,600/t w-o-w to INR 42,500 exw on Friday compared to INR 44,100/t a week back.

Outlook:

ERW patra pipe market is currently facing a challenging period due to weak demand and declining raw material prices. Moreover, prices are anticipated to remain steady or experience a downward trend in the short term. The upcoming Diwali festival will lead to a holiday slowdown and limited trade activities in the market.