India: Major ERW pipe producer reduces list prices for early-July'24 sales
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A major ERW pipe manufacturer, specialising in HRC-based products, has implemented a downward price revision for its base-grade pipe (25-125 NB, 2.2-6 mm) for early-July 2024 sales, sources informed BigMint. The manufacturer has decided to reduce prices amid softening demand and declining raw material prices.
Following this adjustment, prices now stand at INR 61,500/t ($737/t) exw-Raipur, excluding 18% GST. This marks a decrease of approximately INR 2,000/t ($24/t) m-o-m in Raipur. It is worth noting that the company had previously hiked prices by INR 1,000/t ($12/t) m-o-m for June sales.
Moreover, the manufacturer has also decreased prices for other regions like Hyderabad, Bangalore, Delhi, Mumbai and Pune. Current prices stand at INR 63,500/t ($761/t) for Delhi, Pune, Mumbai, Hyderabad and Bangalore. These prices are ex-works (exw), excluding 18% GST.
Distributor-level monthly average prices of ERW pipes in Raipur also fell by INR 500/t ($6/t) m-o-m to INR 59,800/t ($716/t) exy-Raipur in June against INR 60,300/t ($722/t) in May 2024.
Trade-level HRC prices decline
Monthly average prices of trade-level HRC, a key raw material for ERW pipe, decreased m-o-m to INR 53,800/t ($645/t) ex-Mumbai in June against INR 54,100/t ($648/t) in May.
The HRC market is currently showing persistent weakness, accompanied by a substantial decline in sales volumes. Weakened demand has led to a downward trend in prices, as buyers are increasingly inclined to negotiate prices below the listed rates.
India's HRC import volumes have surpassed exports, according to the latest vessel lineup data with BigMint. Recent deals indicate purchases of approximately 110,000 t from Vietnam at $572-585/t CFR and 30,000 t from China at $552-557/t CFR. However, exports have slowed down, as Indian HRC export offers to Southeast Asia and the Middle East (ME) are muted.
Outlook:
The ERW pipe market is expected to remain under pressure in the short term. Softening demand and declining HRC prices are likely to continue exerting downward pressure on ERW pipe prices.
