India: ERW patra pipe prices drop w-o-w on slow trade activities in key markets

ERW patra pipe (41-60 OD) prices dropped w-o-w in both Raipur and Mandi Gobindgarh amid sluggish market demand and trade activities for finished steel in both the markets. In addition, declining raw material prices in the key markets pushed pipe prices down. Furthermore, prices decreased by INR 200/tonne (t) d-o-d on 26 April 2024 in Raipur and by INR 100/t d-o-d in Mandi Gobindgarh.

Current steel prices are INR 46,400/t in Raipur and INR 48,300/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly and monthly average prices:

Both locations reported a decline in prices this week as compared to last week.

Raipur: W-o-w, prices decreased by INR 1,100/t on Friday to INR 46,400/t from INR 47,500/t on 19 April. However, the monthly average price increased in April to INR 46,300/t (up from INR 43,100/t in March). Trade volumes of around 3,000 t were recorded for patra pipe in Raipur this week. The current slowdown in demand and the possibility of future price decreases have had an impact on trading activity.

Mandi: Prices went down by INR 1,400/t to INR 48,300/t on Friday from INR 49,700/t on 19 April. However, the monthly average rose to INR 48,600/t against INR 45,100/t in March. Trades in patra-based pipes were around 2,000 t this week.

Demand soft despite price drop:

While demand for both finished and semi-finished steel remained stable last week, there has been a noticeable slowdown in activity. Despite the decrease in prices, buyers have refrained from negotiating as they anticipate further price reductions.

Raw materials price impact:

Prices of key raw materials like hot-rolled strip (patra) and billets have increased significantly in both Raipur and Mandi compared to the last week.

HR strip (patra) prices decreased by INR 1,100/t w-o-w to INR 45,900/t exw Raipur as on 26 April compared to INR 47,000/t exw Raipur on 19 April. Similarly, patra prices in Mandi dropped INR 1,500/t w-o-w to INR 47,200/t as against INR 48,700/t a week ago.

Billet prices in Raipur have decreased by around INR 2,200/t w-o-w to INR 42,800/t exw Raipur on 26 April compared to INR 45,000/t exw Raipur a week back. Moreover, billet prices in Mandi edged down by INR 900/t w-o-w to INR 46,400 exw today compared to INR 47,300/t last week.

Outlook:

ERW patra pipe prices in Raipur and Mandi Gobindgarh are expected to remain under pressure in the near future due to a slowdown in demand and falling raw materials prices.