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

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9 Nov 2024, 15:40 IST
India: ERW patra pipe prices rise w-o-w amid increased trade activities in key markets

  • Demand, trade activity rebounds post-Diwali

  • Prices of raw materials - HR strips, billets - rise

In India, ERW patra pipe (41-60 OD) prices rose w-o-w in both Raipur and Mandi Gobindgarh amid improved trade activities, fuelled by strong demand for finished steel post-Diwali and rising raw material costs. Prices saw an increase of INR 1,000/tonne (t) d-o-d on 08 November 2024 in Raipur and of INR 500/t in Mandi Gobindgarh.

Current steel prices are INR 43,000/t at Raipur and INR 44,800/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly prices

Both locations reported higher prices w-o-w.

Raipur: Prices rose by INR 1,700/t w-o-w to INR 43,000/t exw-Raipur on Friday from INR 41,300/t on 30 October. Trade volumes of around 12,000 t were recorded for patra pipes this week. Trade activities slowed down last week due to the Diwali festival, resulting in subdued demand. However, this week witnessed a significant rebound in demand, with higher volumes recorded amid robust trade activities.

Mandi: Prices climbed up by INR 1,900/t w-o-w to INR 44,800/t exw-Mandi from INR 42,900/t last week. Trades of around 6,500 t were recorded in patra-based pipes this week. Furthermore, the conversion margins for HR strips to patra pipes also improved, driven by increased demand. This follows a significant slump in demand until last week, during which mills focused on recouping losses incurred during the slowdown.

Raw material price impact

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

HR strip (patra) prices increased by INR 1,700/t w-o-w to INR 42,500/t exw-Raipur on 08 November compared to INR 40,800/t exw on 30 October. Similarly, patra prices in Mandi rose by INR 2,100/t w-o-w to INR 44,000/t exw-Mandi as against INR 41,900/t exw a week ago.

Billet prices in Raipur increased by around INR 1,000/t w-o-w to INR 40,100/t exw on 08 November compared to INR 39,100/t exw a week back. Similarly, billet prices in Mandi also went up by INR 1,000/t w-o-w to INR 42,700/t exw today compared to INR 41,700/t exw, a week back.

Outlook

Prices of key raw materials such as 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.

9 Nov 2024, 15:40 IST

 

 

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