India: ERW pipes prices remain largely stable in Sept-end

India's leading electric-resistance-welded (ERW) pipe producers have kept pipe prices unchanged this week on account of domestic subdued demand in the market this week.

A pipes distributor from Delhi told SteelMint: "A leading structural steel tubes manufacturer is likely to announce a first price decline of around INR 1,000-1,500/t ($14-20/t) on 1 Oct'21 on account of dull domestic demand and decline in hot-rolled coil (HRC) prices. Furthermore, the pipes manufacturer is offering INR 1,000-1,500/t discount to some traders in order to boost their pipe sales. However, trade activity continues to be slow in the domestic market."

"Price conscious buyers are waiting for a further decline in raw material prices in the coming weeks in order to procure material. Low buying intent of ERW pipes distributors owing to sluggish demand has affected pipe consumption in the market. The dealers are awaiting a fall in pipe prices this month," a Tata Tubes distributor based in Mumbai said.

At present, Tata Tubes is reported to be booking coil-based pipes at INR 70,000-70,500/t ($950-956/t), ex-Jharkhand, for September deliveries, compared to the last revised price in early and mid-September which stood at INR 71,000/t ($963/t). Prices do not include GST at 18%.

The current trade offers for base grade ERW pipes (25-125 NB, 2.2-6 mm thickness) are assessed at INR 69,000/t (exy-Delhi), INR 69,250/t (exy-Pune) and INR 67,000/t (exy-Raipur). Prices do not include GST @ 18%.

Disparity between mill and trade segment HRC prices

The trade reference prices continue to remain discounted against what the major private steel producers are offering for Sept'21 deliveries.

Private steel majors have their effective list pricing for HRC at INR 66,000-67,000/t exy-Mumbai for the current month's deliveries. Meanwhile, traders and dealers are awaiting the Oct price announcement by the mills.

SteelMint's trade reference HRC (2.5-8 mm IS 2062) price stands at around INR 65,000-65,500/t (exy-Mumbai), down INR 200/t w-o-w. Prices mentioned above are exclusive of GST @18%.

Mumbai residential real estate on an upswing

Mumbai property registrations are on the rise, and expected to break a 10-year record as property registrations recorded more than 6,000 units in the first 21 days of September, surpassing the September 2018 total of 5,913 units. The average daily registration in September was 300 units, up from 225 units in August.

Even without specific tax breaks or stamp duty exemptions, the property registration numbers continue to rise. With the advent of 'Shraadh', registrations may begin to drop. Even if 50-100 units are registered every day, overall registrations will most likely be about 7,000 units which will be a record.

The rise in sales momentum can also be attributed to the aggressive launch pipeline that the developers have lined up with the start of the festive season earlier this month with 'Ganesh Chaturthi'.

Way ahead

The record-breaking sales in Mumbai real estate is likely going to continue, with big launches planned ahead, majorly backed by the festive season.

Thus, housing demand and supply is anticipated to see an uptick in the upcoming festive season. It will be interesting to wait and watch how the pent-up demand in the Indian housing segment may drive ERW pipe sales in the domestic market in the coming weeks.