India: ERW patra pipe prices rise w-o-w amid rising raw material costs

ERW patra pipe (41-60 OD) prices increased w-o-w in both Raipur and Mandi Gobindgarh amid hike in raw material prices in both the markets. Moreover, slight improvement in trading activities were seen in both the markets compared to the previous week. Furthermore, prices inched up by INR 100/tonne (t) d-o-d on 20 September 2024 in Mandi Gobindgarh and remained stable d-o-d in Raipur.

Current steel prices are INR 41,100/t in Raipur and INR 42,900/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly, monthly average prices

Both locations reported hike in prices this week as compared to the last week.

Raipur: Prices increased by INR 700/t w-o-w to INR 41,100/t on Friday from INR 40,400/t on 13 September. Slight improvement were seen in trade activities this week and trade volumes of around 5,000 t were recorded for patra pipe in Raipur this week. However, the monthly average price decreased by INR 1,300/t in September to INR 40,700/t from INR 42,000/t in April.

Mandi: Prices increased by INR 100/t to INR 42,900/t on Friday from INR 42,800/t on 13 September. The monthly average prices in September fell by INR 1,500/t to INR 43,000/t against INR 44,500/t in August. Trades in patra-based pipes were around 3,500 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 increase in trade volumes suggests a moderate improvement in buying activity. Additionally, ERW patra pipe prices climbed due to surge in raw material costs.

Raw materials 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 700/t w-o-w to INR 40,600/t exw Raipur as on 20 September compared to INR 39,900/t exw Raipur on 13 september. Similarly, patra prices in Mandi rose by INR 300/t w-o-w to INR 42,100/t as against INR 41,800/t a week ago.

Billet prices in Raipur have also increased by around INR 900/t to INR 38,200/t exw Raipur w-o-w on 20 September compared to INR 37,300/t exw Raipur a week back. Moreover, billet prices in Mandi increased by INR 300/t to INR 41,400 exw w-o-w in Mandi compared to INR 41,100/t exw last week.

Outlook:

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, putting an upward pressure on ERW patra pipe prices.

Overall, the outlook for the ERW patra pipe market is cautiously optimistic. While some improvement is evident, long-term price stability will depend on the interplay of raw material costs and overall steel demand.