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India: ERW patra prices show mixed trends, demand subdued

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BigMint Bureau

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3 Aug 2024, 13:28 IST

India: ERW patra prices show mixed trends, demand subdued

ERW patra pipe (41-60 OD) prices showed a mixed trend w-o-w in both Raipur and Mandi Gobindgarh. Raipur saw a slight increase in pipe prices this week, while in Mandi prices fell compared to last week. However, demand for ERW patra pipes weakened in both markets compared to last week. In addition, prices dropped INR 300/t d-o-d in Raipur and INR 600/t in Mandi Gobindgarh on 2 August.

Current steel prices are INR 42,700/t in Raipur and INR 45,600/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly average prices:

Patra pipe prices went up this week in Raipur, while Mandi experienced a price drop compared to last week.

Raipur: Prices increased by INR 300/t w-o-w on Friday to INR 42,700/t from INR 42,400/t on 26 July. The steel market in Raipur experienced a volatile week. Prices saw an upward trend at the beginning of the week but declined mid-week and remained subdued till the end of the week.

Trading activity was significantly impacted by the closure of around 150 induction furnaces (IFs) in Chhattisgarh on the night of 29 July due to increased electricity tariffs. This indefinite shutdown led to subdued market conditions throughout the week.

Mandi: Prices dropped INR 300/t w-o-w to INR 45,600/t on Friday from INR 45,900/t last week. The patra-based pipe market in Mandi Gobindgarh remained sluggish this week due to weak overall demand. Buyers adopted a cautious approach, purchasing only essential quantities to meet immediate needs.

Raw material price impact:

HR strip (patra) prices increased by INR 300/t w-o-w to INR 42,200/t exw Raipur on 2 August. However, patra prices in Mandi dropped INR 300/t w-o-w to INR 44,600/t as against INR 44,900/t last week.

Billet prices in Raipur moved up w-o-w by INR 200/t to INR 48,800/t exw on 2 August. However,, billet prices in Mandi went down by INR 300/t w-o-w to INR 42,500 exw compared to INR 42,800/t last week.

Outlook:

The ERW patra pipe market is expected to remain volatile in the near term. While prices might see some fluctuations based on raw material costs and demand, the overall trend is likely to be subdued.