India: ERW patra pipe prices edge down w-o-w amid demand slowdown
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ERW patra pipe (41-60 OD) prices edged down w-o-w in both Raipur and Mandi Gobindgarh amid slowdown in demand in both markets due to which a decline in trading activities were seen in these markets compared to the previous week. Furthermore, prices decreased by INR 500/tonne (t) d-o-d on 10 May in Raipur and Mandi Gobindgarh.
Current steel prices are INR 47,700/t in Raipur and INR 49,500/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.
Weekly, monthly average prices:
Both locations reported a decline in prices this week as compared to last week.
Raipur: Prices dropped INR 200/t w-o-w on Friday to INR 47,700/t from INR 47,900/t on 3 May. Trade volumes of around 2,500 t were recorded for patra pipes in Raipur this week. Decline in trading activities was seen in Raipur, due to a slowdown in finished steel demand.
Mandi: Prices inched down by INR 100/t to INR 49,500/t on Friday from INR 49,600/t, a week ago. Trades in patra-based pipes were around 1,500 t this week.
Demand drop:
Steel demand dropped this week, reversing the prior week's increase in demand for both finished and semi-finished products. The decrease in trade volumes across Raipur and Mandi suggests decline in buying activity. Additionally, ERW patra pipes prices decreased due to a decline in raw material costs.
Raw materials price impact:
Prices of key raw materials like hot-rolled strip (patra) and billets have declined in both Raipur and Mandi compared to last week.
HR strip (patra) prices decreased by INR 200/t w-o-w to INR 47,200/t exw Raipur as on 09 May compared to INR 47,400/t exw Raipur on 3 May. Similarly, patra prices in Mandi dropped INR 300/t w-o-w to INR 48,500/t as against INR 48,800/t a week ago.
Billet prices in Raipur have remained stable w-o-w at INR 44,500/t exw Raipur on 10 May. However, billet prices in Mandi went down by INR 300/t w-o-w to INR 47,200 exw today compared to INR 47,500/t last week.
Outlook:
Prices are likely to remain stable or see a slight downward trend in the near term. Demand for finished steel products has slowed down, leading to a decrease in buying activity. Moreover, prices of key raw materials like hot rolled strip (patra) and billets have fallen, reducing production costs for ERW pipes.
Fluctuations in global steel prices could impact the cost of raw materials and finished products. However, if demand for finished steel products recovers, ERW pipe prices could rise again.
