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India: Major ERW pipe producer hikes list prices for early-June'24 sales

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BigMint Bureau

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1 Jun 2024, 13:21 IST

India: Major ERW pipe producer hikes list prices for early-June'24 sales

A major ERW pipe manufacturer, specialising in HRC-based products, has implemented an upward price revision for its base-grade pipe (25-125 NB, 2.2-6 mm) for early-June 2024 sales, sources informed BigMint.

Following this adjustment, prices now stand at INR 63,500/t ($761/t) exw-Raipur, excluding 18% GST. This marks an increase of approximately INR 1,000/t ($12/t) m-o-m in Raipur. It is worth noting that the company had hiked prices by INR 1,000/t ($12/t) m-o-m for April and May sales as well.

Moreover, the manufacturer has also increased prices for other major regions like Hyderabad, Bangalore, Delhi and Pune. Current prices now stand at INR 64,500/t ($773/t) for Hyderabad and INR 65,500/t ($785/t) for Delhi, Pune and Bangalore. These prices are ex-works (exw), excluding 18% GST.

Distributor-level monthly average prices of ERW pipes in Raipur also rose by INR 300/t ($4/t) to INR 60,300/t ($723/t) exy-Raipur in May against INR 60,000/t ($719/t) in April 2024.

Trade-level HRC prices rise m-o-m

Monthly average prices of trade-level HRC, which is a key raw material for ERW pipe, have increased m-o-m to INR 54,100/t ($649/t) ex-Mumbai in May against INR 52,600/t ($631/t) in April.

Several Indian steel mills strategically opted for maintenance shutdowns in April. Some major mills planned similar maintenance activities in May as well. This helped the mills to deal with sluggish demand in both domestic and international markets.

India's imports of bulk HRCs have begun to grow as per the recent vessel line-up data maintained with BigMint. An import deal was heard concluded for 40,000t at $592-596/CFR for July shipment from Vietnam. However, exports have slowed down.

Outlook:

The short-term outlook seems positive for the manufacturer due to their successful upward price adjustments in last three months. However, long-term success depends on factors like sluggish demand and rising import of HRCs. The market is now awaiting the price announcements from primary mills for June 2024 sales.