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India: ERW patra pipe prices edge down w-o-w amid slowdown in demand

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BigMint Bureau

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8 Jun 2024, 13:09 IST

India: ERW patra pipe prices edge down w-o-w amid slowdown in demand

ERW patra pipe (41-60 OD) prices edged down w-o-w in both Raipur and Mandi Gobindgarh amid slowdown in demand in both the markets. As a result, a decline in trading activities was seen across markets compared to the previous week.

In addition, prices remained stable d-o-d on 7 June 2024 in Raipur and Mandi Gobindgarh. This price stability came amid improvement in trading activities on Friday across markets.

Current steel prices are INR 48,000/t in Raipur and INR 49,300/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly average prices:

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

Raipur: Prices dropped by INR 400/t w-o-w on Friday to INR 48,000/t from INR 48,400/t on 31 May. The steel market has seen sluggish trading activity since the beginning of the week as demand for finished steel has slowed down. However, there were signs of improvement on Friday, with trading activity picking up again. Trade volumes of around 8,800 t were recorded for patra pipe in Raipur this week.

Mandi: Prices inched down by INR 200/t to INR 49,300/t on Friday from INR 49,500/t, a week ago. Trades in patra-based pipes were around 2,000 t this week.

Demand-price drop:

There was a drop in steel demand this week, reversing the previous week's gain in demand for both finished and semi-finished products. Lower trading volumes in Raipur and Mandi indicate a decline in buying activity. Additionally, ERW patra pipes prices fell due to a decrease in raw material costs.

Raw materials price impact:

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

HR strip (patra) prices decreased by INR 500/t w-o-w to INR 47,500/t exw Raipur as on 7 June compared to INR 48,000/t exw Raipur on 31 May. Similarly, patra prices in Mandi dropped by INR 200/t w-o-w to INR 48,500/t as against INR 48,700/t a week ago.

Billet prices in mandi have remained marginally stable w-o-w to INR 47,100/t exw Mandi on 7 June. However, billet prices in Raipur went down by INR 300/t w-o-w to INR 44,300 /t exw Raipur compared to INR 44,600/t last week.

Outlook:

While steel demand has slowed down leading to a drop in pipe prices this week, there are signs of improvement in trading activity on Friday. This suggests a potential short-term bounce back. In the near term, prices are expected to remain stable or see a slight uptick as sustained rise in demand could push prices up again.