India: ERW patra pipe prices rise w-o-w; thrust from raw material prices

ERW patra pipe prices (41-60 OD) increased by about INR 300-500/t w-o-w in the markets under assessment this week. The thrust came from increased raw material prices and improved sentiments during the week, however, trades were slow keeping the prices from making a steeper incline.

Traders in the Raipur and Mandi Gobindgarh markets voiced their discontent about sales this week, saying they could only achieve average trade volumes. This affirms the low buying appetite for the finished products.

Weekly prices

The price increased notionally in Mandi Gobindgarh, while it was slightly higher in Raipur.

Raipur: Prices rose by INR 500/t w-o-w to INR 41,200/t exw-Raipur on 31 January, compared to INR 40,700/t exw on 24 January.

Mandi Gobindgarh: Prices at INR 44,300/t exw on 31 January were up by INR 300/t from INR 44,000/t exw on 24 January.

Daily prices

On a daily comparison, the prices stood unchanged in Raipur and Mandi Gobindgarh markets as on 31 January.

Raw materials price impact

HR strip (patra) price increased by INR 500/t w-o-w to INR 40,800/t exw-Raipur as on 31 January . Meanwhile, patra prices increased by INR 300/t w-o-w to INR 43,500/t exw-Mandi Gobindgarh.

Billet prices were assessed at INR 39,350/t exw-Raipur as on 31 January compared to INR 39,000/t on 24 January. Meanwhile, billet prices in Mandi Gobindgarh closed at INR 42,800/t DAP, as against INR 42,300/t on 24 January.

Outlook

The ERW patra pipe market in India should show minimal fluctuations in the near term. The sentimental hype around the Budget started easing down after the announcement on 1 February. Market participants turned cautious in anticipation of volatility in raw material prices in the upcoming week. However, with the fiscal year-end around the corner, the expectation of improvement in demand is still rife lending some sentimental support which might restrict any steeper decline in prices in the upcoming weeks.