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India: ERW patra pipe prices up INR 700/t w-o-w; market reflects mixed sentiments

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BigMint Bureau

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21 Dec 2024, 14:37 IST

India: ERW patra pipe prices up INR 700/t w-o-w; market reflects mixed sentiments

ERW patra pipe prices (41-60 OD) rose by INR 700/t w-o-w in Raipur and Mandi Gobindgarh. The price increment resulted from the increase in raw material prices as the market was abuzz about the 25% steel import duty proposed by the government. Trading activities were slow during 16-20 December. In addition, prices moved up by INR 100/tonne (t) d-o-d in Raipur, although in Mandi they continued to remain stable on 20 December.

BigMint's daily assessed ERW patra pipe (41-60 OD) prices stood at INR 41,700/t exw-Raipur and INR 44,800/t exw-Mandi Gobindgarh as on 20 December.

Sellers in both Raipur and Mandi Gobindgarh started offering higher since the beginning of week. Raw material prices, especially billets increased to INR 39,350/t exw-Raipur (up INR 700/t w-o-w), and INR 42,500/t exw-Mandi Gobindgarh (up INR 600/t w-o-w), excluding GST at 18%. The prices mentioned above exclude 18% GST.

"Buyers remained cautious while procuring, and continued buying in small volumes as per their urgent requirements. This kept market prices from registering a steep increase, and buyers lacked confidence in bulk buying amid slow sales of end products," said an industry participant.

Raw materials price impact

Raw material prices, especially billets, increased to INR 39,350/t exw-Raipur (up INR 700/t w-o-w) and INR 42,500/t exw-Mandi Gobindgarh (up, INR 600/t w-o-w), excluding GST at 18%. However, billet prices were quite volatile during the week ended 21 December, exhibiting mixed market sentiments.

HR strip (patra) prices increased by INR 700/t w-o-w to INR 41,300/t exw-Raipur as of 20 December. Similarly, it rose by INR 600/t w-o-w to INR 44,000/t exw-Mandi Gobindgarh. The prices above exclude GST at 18%.

Outlook:

The volatility in raw material prices shall have a similar effect on ERW patra pipe prices in Raipur and Mandi Gobindgarh. Prices increased amid possibility of imposition of steel import duty and the recent gazette notification about the initiation of investigations on steel imports. However, this failed to boost buying interest in the market.