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India: ERW patra prices show mixed trends, demand subdued

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BigMint Bureau

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25 May 2024, 13:00 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 pipes prices this week, while in Mandi prices fell compared to last week. However, demand for ERW patra pipes fell in both markets compared to last week. In addition, prices inched up by INR 100/t d-o-d in Raipur and fell by INR 200/t in Mandi Gobindgarh on 24 May.

Current steel prices are INR 48,100/t in Raipur and INR 48,800/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly prices:

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

Raipur: Prices increased by INR 100/t w-o-w on Friday to INR 48,100/t from INR 48,000/t on 17 May. Trade volumes of around 5,500 t were recorded this week. Decrease in trading activities were seen due to a drop in finished steel demand.

Mandi: Prices dropped INR 200/t w-o-w to INR 48,800/t on Friday from INR 49,000/t last week. Trades in patra-based pipes were around 2,000 t this week.

Demand drop:

Steel demand dropped this week, reversing the prior week's trend for both finished and semi-finished products. The decline in trade volumes across Raipur and Mandi suggests weak buying activity.

Raw material price impact:

HR strip (patra) prices remained stable w-o-w at INR 47,600/t exw Raipur on 24 May. However, patra prices in Mandi dropped INR 300/t w-o-w to INR 47,700/t as against INR 48,000/t last week.

Billet prices in Raipur moved down w-o-w by INR 400/t to INR 44,400/t exw on 24 May. Moreover, billet prices in Mandi went down by INR 300/t w-o-w to INR 46,700 exw today compared to INR 47,000/t last week.

Outlook:

While Raipur saw a slight increase in prices this week, Mandi experienced a drop. Stability in raw material (HR strip) prices in Raipur might limit price hikes further, but a decrease in patra prices in Mandi may put downward pressure on prices.

Overall, prices could remain volatile in the short term, potentially reflecting a downward trend due to softening demand.