India: ERW patra pipe prices show mixed trends amid improved demand

ERW patra pipe (41-60 OD) prices showed mixed trends w-o-w in Raipur and Mandi Gobindgarh. Mandi saw a decrease in prices, while in Raipur prices remained stable. This price movement comes alongside a pick-up in trading activity, which was sluggish last week but improved somewhat due to sellers offering lower prices.

D-o-d, prices held steady in Raipur on Friday. In contrast, prices in Mandi Gobindgarh slipped by INR 100/t compared to the previous day.

Current steel prices are INR 41,200/t in Raipur and INR 44,000/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly average prices:

Mandi reported a decline in prices this week, while Raipur prices remained stable compared to last week.

Raipur: Prices remained unchanged w-o-w to INR 41,200/t on Friday. Trade volumes of around 3,500 t were recorded this week, indicating demand improvement.

Mandi: Prices dropped by INR 300/t w-o-w on Friday to INR 44,000/t from INR 44,300/t on 31 January. Trading activities of around 2,000 t in patra-based pipes were recorded this week.

Demand improvement:

ERW patra pipe prices in both Mandi Gobindgarh and Raipur witnessed a downward trend in the beginning of the week. This decline was attributed to subdued demand as buyers adopted a cautious stance, anticipating further price reductions. However, a market reversal occurred mid-week as buying activity accelerated in response to adjusted, lower price levels. Furthermore, increased demand for raw materials such as billets and hot-rolled (HR) strip provided additional support to the market.

Raw materials price impact:

HR strip (patra) prices remained stable w-o-w at INR 40,800/t exw Raipur as on 7 February. However, patra prices in Mandi fell by INR 300/t w-o-w to INR 43,200/t compared to INR 43,500/t last week.

A Raipur-based mill official reported that the conversion charge for billet to HR strip patra in Raipur currently stands at INR 1,300-1,800/t, with prices varying across plants due to demand-driven pricing. In contrast, the same charges in Mandi are significantly lower, ranging from INR 700-800/t.

Billet prices in Raipur decreased by INR 700/t w-o-w to INR 38,800/t exw Raipur on 07 February compared to INR 39,500/t last week. In addition, billet prices in Mandi also went down by INR 400/t w-o-w to INR 42,400/t exw Mandi compared to INR 42,800/t last week.

Outlook:

ERW patra pipe prices are likely to exhibit stability in the near term, supported by the recent uptick in demand and relatively steady raw material costs. However, the market is likely to remain volatile due to factors such as seasonal demand patterns, raw material price fluctuations and supply-demand dynamics of the market.