India: ERW patra pipe prices show mixed trends amid improved demand

ERW patra pipe (41-60 OD) prices showed mixed trends w-o-w in Raipur and Mandi Gobindgarh. Raipur saw a decrease in prices, while Mandi Gobindgarh prices remained stable. This price movement comes alongside a pick-up in trading activity, which was sluggish last week but improved somewhat due to sellers offering lower prices.

In addition, on a d-o-d basis, prices increased by INR 200/tonne (t) on 12 July in Raipur and by INR 500/t in Mandi Gobindgarh.

Current steel prices are INR 43,700/t in Raipur and INR 47,000/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly average prices:

Raipur reported a decline in prices this week, while Mandi prices remained stable compared to the last week.

Raipur: Prices dropped by INR 300/t w-o-w on Friday to INR 43,700/t from INR 44,000/t on 12 July. Trade volumes of around 7,500 t were recorded this week, indicating demand improvement.

Mandi: Prices remained unchanged w-o-w to INR 47,000/t on Friday. Trading activities of around 3,000 t in patra-based pipes were recorded this week.

Demand improvement:

ERW patra pipe prices in both Mandi Gobindgarh and Raipur witnessed a downward trend at the beginning of the week. This decline was attributed to subdued demand as buyers adopted a cautious stance, anticipating further price reductions.

However, a market reversal occurred mid-week as buying activity accelerated in response to adjusted, lower price levels. Furthermore, increased demand for raw materials such as billets and hot-rolled (HR) strip provided additional support to the market.

Raw materials price impact:

HR strip (patra) prices decreased by INR 300/t w-o-w to INR 43,200/t exw Raipur as on 12 July compared to INR 43,500/t exw Raipur on 5 July. However, patra prices in Mandi remained stable w-o-w to INR 46,000/t.

Billet prices in Raipur decreased by INR 300/t w-o-w to INR 39,500/t exw Raipur on 12 July. In addition, billet prices in Mandi also went down by INR 300/t w-o-w to INR 43,500 exw Mandi compared to INR 43,800/t last week.

Outlook:

ERW patra pipe prices are likely to exhibit stability in the near term, supported by the recent uptick in demand and relatively steady raw material costs. However, the market is likely to remain volatile due to factors such as seasonal demand patterns, raw material price fluctuations and supply-demand dynamics of the market.