India: ERW patra pipe prices increase by INR 300/t w-o-w; market reflects mixed sentiments

ERW Patra pipe prices (41-60 OD) showed mixed trends w-o-w. Prices increased by around INR 300/tonne (t) w-o-w in Raipur as on 3 January 2025. The increase in raw material prices led to an increase in pipe prices during the week. However, in Mandi Gobindgarh, prices dropped back to the previous week's levels after increasing by INR 500/t d-o-d on 2 January. Demand remained sluggish, restricting trade in both cities.

Weekly prices:

Raipur reported an increase in prices this week, while in Mandi Gobindgarh remained stable for the second consecutive week.

Raipur: Prices increased by INR 300/t w-o-w on Friday to INR 41,300/t from INR 41,000/t on 27 December.

Mandi: Prices stood at INR 44,800/t on Friday, unchanged against last week's closing.

Daily prices:

On a day-on-day comparison, prices dropped by INR 200/t in Raipur, and by INR 400/t in the Mandi Gobindgarh market as on 3 January 2025.

Raw materials price impact:

HR strip (patra) prices increased by INR 300/t w-o-w to INR 40,900/t exw-Raipur as on 4 January compared to INR 40,600/t on 27 December. However, patra prices in Mandi remained stable w-o-w at INR 44,000/t exw-Mandi Gobindgarh.

Billet prices, on a weekly comparison, increased by INR 650/t to INR 39,550/t exw-Raipur on 4 January. Similarly, billet prices in Mandi rose by INR 350/t w-o-w to INR 42,700/t exw-Mandi Gobindgarh compared to last week.

Outlook

The ERW Patra pipe market in India has continued to experience a mixed trend over the last couple of weeks. Participants opine demand should improve with the approaching fiscal year-end which might lend some support to prices. Volatility in raw material prices and competitive pressures are likely to restrict any steep increase in prices in the near future.