India: ERW patra pipe prices rise amid increased trade activities in key markets

ERW patra pipe (41-60 OD) prices rose w-o-w in both Raipur and Mandi Gobindgarh amid good demand for finished steel in both the markets. In addition, prices saw an increase of INR 1,200/tonne (t) d-o-d on 5 April 2024 in Raipur and of INR 1,500/t in Mandi Gobindgarh.

Current steel prices are INR 46,700/t at Raipur and INR 49,500/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly, monthly averages:

Both locations reported higher average prices this week compared to the last week.

Raipur: Weekly average prices rose to INR 45,000/t (up from INR 43,400/t). The monthly average also increased in April first week to INR 45,000/t (up from INR 43,100/t in March). Trade volumes of around 26,200 t were recorded for patra pipe in Raipur this week. Due to Holi festival trade activities remained low last week, but this week higher volumes were recorded amid strong trade activities and improved market demand.

Mandi: Weekly average prices climbed to INR 47,600/t (up from INR 45,550/t). The monthly average also rose to INR 47,600/t against INR 45,100/t in March. Trades in patra-based pipes were around 5,500 t this week.

Demand-price improvement:

Steel markets rebounded this week, reversing the prior week's decline in demand for both finished and semi-finished products. The surge in trade volumes suggested a significant improvement in buying activity. Additionally, ERW patra pipes prices climbed due to the combined effect of stronger demand and rising raw material costs.

Raw material price impact:

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

HR strip (patra) prices increased by INR 3,400/t w-o-w to INR 46,200/t exw Raipur as on 5 April compared to INR 42,800/t exw Raipur on 29 March. Similarly, patra prices in Mandi rose by INR 4,000/t w-o-w to INR 48,300/t as against INR 44,300/t a week ago.

Billet prices in Raipur have increased by around INR 3,200/t w-o-w to INR 43,200/t exw Raipur on 5 April compared to INR 40,000/t exw Raipur a week back. Moreover, billet prices in Mandi went up by INR 3,950/t w-o-w to INR 46,750 exw today compared to INR 42,800/t a week back.

Outlook:

Prices of key raw materials like hot-rolled strip (patra) and billets have increased significantly in both Raipur and Mandi compared to last week, putting upward pressure on ERW patra pipe prices. However, supply, demand, and global market conditions could all influence future price movements.