India: ERW patra pipe prices increase w-o-w amid rising raw material costs
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ERW patra pipe (41-60 OD) prices rose w-o-w in both Raipur and Mandi Gobindgarh amid a surge in raw material prices and improved demand for finished steel in both markets. However, prices remained stable d-o-d on 4 October 2024 in Raipur and Mandi Gobindgarh. Current steel prices are INR 44,500/t at Raipur and INR 45,800/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.
Weekly prices
Both locations reported increases in prices this week as compared to the last week.
Raipur: Prices rose by INR 1,800/t w-o-w on Friday to INR 44,500/t from INR 42,700/t on 27 September. Trade volumes of around 5,000 t were recorded this week, indicating demand improvement.
Mandi: Prices went up by INR 600/t to INR 45,800/t on Friday from INR 45,200/t, a week ago. Trading activities of around 2,000 t in patra-based pipes were recorded in Mandi this week.
Demand-price improvement
Patra-based pipe prices have been on a steady upward trajectory this week in both Mandi and Raipur. The demand for finished steel experienced a slight increase w-o-w, with most trading activity concentrated between Monday and Thursday. However, a significant decline in demand for finished steel was observed on Friday in both markets, leading to a stabilisation of prices for the day.
In addition, the uptrend in pipe prices can be attributed to the increase in raw material costs, particularly hot-rolled strip (patra) and billets.
Raw material price impact
Prices of key raw materials like hot-rolled strip (patra) and billets increased significantly in both Raipur and Mandi compared to the last week.
HR strip (patra) prices increased by INR 1,800/t w-o-w to INR 44,000/t exw Raipur as on 4 October compared to INR 42,200/t exw Raipur on 27 September. Similarly, patra prices in Mandi rose by INR 800/t w-o-w to INR 45,000/t exw as against INR 44,200/t exw a week ago.
Billet prices in Raipur increased by around INR 2,300/t w-o-w to INR 41,900/t exw Raipur on 4 October compared to INR 39,600/t exw Raipur a week back. Moreover, billet prices in Mandi went up by INR 1,000/t w-o-w to INR 44,000/t exw on Friday compared to INR 43,000/t exw a week back.
Outlook
The positive trend is expected to continue in the coming weeks, driven by rising raw material prices and sustained demand for patra-based pipes in both regions. However, significant fluctuations in global steel markets or changes in government policies could affect price momentum.