India: ERW patra pipe prices reflect mixed trends w-o-w

ERW patra pipe prices (41-60 OD) showed mixed trends w-o-w staying rangebound in Raipur, while increasing by INR 300/t in Mandi Gobindgarh this week. The thrust came from the increase in raw material prices during the week.

Traders in the market continued to face difficulty in closing deals this week. Decent deals were heard concluded in Raipur in contrast to the low demand in the Mandi Gobindgarh market.

Weekly prices

The prices remained stable w-o-w in Raipur while it increased slightly in Mandi Gobindgarh this week.

Raipur: Prices stood unchanged w-o-w at INR 40,700/t exw-Raipur, as of 24 January. Pipe prices, however, had dropped to INR 40,400/t on 21 January before rising.

Mandi Gobindgarh: Prices stood at INR 44,000/t exw on 24 January, up from INR 43,700 on 17 January. Prices had dropped to INR 43,400/t on 22 January before making an ascent.

Daily prices

Prices stood unchanged in Raipur d-o-d, however, increased by INR 200/t in the Mandi Gobindgarh market as on 24 January.

Raw materials price impact

HR strip (patra) price stood ground w-o-w at INR 40,300/t exw-Raipur as on 24 January . Meanwhile, patra prices increased by INR 300/t w-o-w to INR 43,200/t exw-Mandi Gobindgarh.

Billet prices were assessed at INR 39,000/t exw-Raipur as on 24 January compared to INR 38,700/t on 17 January. Meanwhile, billet prices in Mandi Gobindgarh closed at INR 42,300/t DAP, as against INR 41,900/t on 17 January.

Outlook

The ERW patra pipe market in India has been showing some improvement. However, demand continues to stay low for finished products hindering any potential rise in prices. Speculation around potential safeguard duty is rife, which was the key driver in the price segment this week. However, distributors also evinced some optimism as regards steel demand in the upcoming weeks.