India: ERW patra pipe prices rise w-o-w amid surge in raw material prices

ERW patra pipe (41-60 OD) prices rose w-o-w in both Raipur and Mandi Gobindgarh amid surge in raw material prices and improved demand for finished steel in both the markets. However, prices saw a decrease of INR 300/tonne (t) d-o-d on 19 April 2024 in Raipur and Mandi Gobindgarh.

Current steel prices are INR 47,500/t at Raipur and INR 49,700/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly and monthly average:

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

Raipur: On a w-o-w basis, price rose by INR 2,000/t on Friday to INR 47,500/t from INR 45,500/t on 12 April. Moreover, the monthly average increased in April to INR 46,200/t (up from INR 43,100/t in March). Trade volumes of around 7,000 t were recorded for patra pipe in Raipur this week. Only slight improvement in trade volumes were seen this week amid sharp increase in prices.

Mandi: Prices went up by INR 1,700/t to INR 49,700/t on Friday from INR 48,000/t on 12 April. In addition, the monthly average rose to INR 48,500/t against INR 45,100/t in March. Trades in patra-based pipes were around 4,000 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 pipes prices climbed due to surge in 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 2,000/t w-o-w to INR 47,000/t exw Raipur as on 19 April compared to INR 45,000/t exw Raipur on 12 April. Similarly, patra prices in Mandi rose by INR 1,800/t w-o-w to INR 48,700/t as against INR 46,900/t a week ago.

Billet prices in Raipur have increased by around INR 2,000/t w-o-w to INR 45,000/t exw Raipur on 19 April compared to INR 42,000/t exw Raipur a week back. Moreover, billet prices in Mandi went up by INR 1,900/t w-o-w to INR 47,300 exw today compared to INR 45,400/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.

This trend reflects the dynamic nature of the market, where material costs directly influence the pricing of finished goods. Despite this, the trading activity for ERW patra pipes has been moderate, suggesting a cautious approach by the market participants in response to the price surge.