India: ERW patra pipe prices show mixed trends; demand remains subdued

ERW patra pipe prices (41-60 OD) showed mixed trends w-o-w in Raipur and Mandi Gobindgarh. In Mandi, prices rose slightly, while Raipur prices fell due to weak demand for finished steel. In addition, d-o-d, prices dropped INR 200/tonne (t) in Raipur and by INR 300/t in Mandi Gobindgarh on 15 November 2024.

Current steel prices are INR 42,000/t in Raipur and INR 45,200/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

ERW patra pipe prices in Mandi Gobindgarh and Raipur have declined since the beginning of the week, driven by subdued demand and cautious buying sentiment. Buyers anticipate additional price reductions, while reduced demand for raw materials (billets and HR strips), negatively impacting finished steel sentiment.

Weekly prices:

Raipur reported a decline in prices this week, while prices in Mandi edged up compared to last week.

Raipur: Prices dropped by INR 600/t w-o-w on Friday to INR 42,000/t from INR 42,600/t on 9 November. Trade volumes of around 3,000 t were recorded this week, indicating demand slowdown.

Mandi: Prices edged up w-o-w to INR 45,200/t on Friday compared to INR 45,000/t last week. Trading activities of around 2,000 t in patra-based pipes were recorded this week.

Raw materials price impact:

HR strip (patra) prices decreased by INR 300/t w-o-w to INR 41,600/t exw Raipur as on 15 November compared to INR 42,200/t exw Raipur on 9 November. However, patra prices in Mandi remained stable w-o-w at INR 44,200/t.

Billet prices in Raipur decreased by INR 800/t w-o-w to INR 39,000/t exw Raipur on 15 November. In addition, billet prices in Mandi fell by INR 500/t w-o-w to INR 42,200 exw Mandi compared to INR 42,700/t last week.

Outlook:

ERW patra pipe prices in Raipur and Mandi Gobindgarh are expected to remain volatile due to fluctuating demand and raw material costs. Buyers may continue to adopt a cautious stance, anticipating further price reductions.