India: ERW patra pipe prices rise w-o-w on higher raw material costs, tight supply

• Labour supply shrinks amid extreme heat, impacts production
  
  
• Demand remains uneven, need-based purchases cap price rise
  
  

ERW patra pipe prices (41-60 mm OD) rose w-o-w in the week ended 12 June 2026 in both Raipur and Mandi Gobindgarh, supported by higher raw material prices and tight supply, even as demand recovery remained uneven.

However, on a d-o-d basis, prices remained unchanged in both markets. In Raipur, prices stood at INR 44,200/t ex-works (exw) on 12 June, while in Mandi Gobindgarh, prices stood at INR 48,000/t exw. Listed prices are ex-works and exclude 18% GST.

Weekly price trends

Raipur: ERW patra pipe prices in Raipur increased by INR 300/t w-o-w to INR 44,200/t exw on 12 June, compared with INR 43,900/t on 5 June 2026. Demand remained weak during the week, with trading activity largely restricted to need-based purchases as buyers continued to adopt a cautious procurement approach. Market participants reported limited fresh enquiries and an absence of sizeable bookings, indicating that underlying consumption remained restrained.

On the supply side, a Raipur-based manufacturer indicated that "pipe availability remains tight, as extreme heat conditions and tight labour availability have constrained manufacturing operations and reduced production efficiency across several mills."

Most market participants expect prices to remain largely stable in the coming days. While demand has yet to exhibit a meaningful recovery, tight supply conditions are expected to provide support to prevailing price levels and limit the scope for any significant downward correction.

Mandi Gobindgarh: ERW patra pipe prices in Mandi Gobindgarh rose by INR 300/t w-o-w to INR 48,000/t exw on 12 June from INR 47,700/t a week earlier. Although market activity improved slightly during the early part of the week, the recovery proved to be short-lived, as buying interest weakened again towards the latter half of the week. Market participants reported limited fresh enquiries, with procurement remaining largely need-based.

A Mandi Gobindgarh-based source noted, "Tight scrap availability continues to restrict production levels, resulting in limited supplies of ready HR strips. At the same time, billet-to-HR strip conversion parity has increased to around INR 4,000/t during the current week, up from approximately INR 3,000/t a week earlier and INR 1,500-2,000/t in the preceding weeks. Consequently, producers remain under cost pressure, while constrained availability continues to support prevailing price levels."

Another regional source stated, "The widening price gap between Mandi Gobindgarh and neighbouring markets has increasingly influenced buying patterns. Rising production costs in Mandi Gobindgarh have made material from nearby regions comparatively more competitive, prompting buyers to shift their procurement accordingly. This has placed additional pressure on local trading activity and constrained the pace of market recovery."

Raw material prices

HR strip (patra): HR strip (patra) prices in Raipur inched up by INR 100/t w-o-w to INR 43,600/t exw on 12 June from INR 43,500/t exw on 5 June. Meanwhile, prices in Mandi Gobindgarh rose by INR 300/t w-o-w to INR 47,000/t exw from INR 46,700/t a week earlier.

Billet: Billet prices in Raipur remained largely stable w-o-w at around INR 38,750/t exw on 12 June. In contrast, billet prices in Mandi Gobindgarh edged down by INR 300/t w-o-w to INR 42,900/t DAP on 12 June from INR 43,200/t on 5 June.

Outlook

ERW patra pipe prices are expected to remain largely stable in the coming days. Demand recovery remains uneven, with most buying driven by immediate requirements. However, firm raw material costs and tight supply conditions are expected to support prices and prevent any sharp decline. While weak consumption may limit any significant price increase, the possibility of a major fall also appears limited due to persistent cost pressures faced by producers.