Traders are quite uncertain about the price changes that the pipes segment could see in the month of July. Some are of the view that the leading structural steel tubes producers could be looking to further correct their list prices by another INR 4,000/tonne (t) ($54/t) in the coming two weeks. This will boost sales in the domestic market, as per the latest information available to SteelMint.
“APL Apollo Tubes prices remain stable amid sluggish demand although trading activities have started to pick up in the domestic market,” said a Delhi-based APL Apollo Tubes distributor.
At present, Tata Tubes is reported to be booking coil-based pipes at INR 70,000/t ($937/t), ex-Jharkhand for Jul ’21 deliveries, compared to the last revised price in Jun ’21 of INR 72,000/t ($962/t). Prices do not include GST @ 18%.
SteelMint’s current trade offers as of week 28 of CY ’21 for base grade ERW pipes (25-125 NB, 2.2-6 mm thickness) are assessed at INR 70,000/t(exy-Delhi), INR 70,250/t(exy-Mumbai) and 68,000/t(exy-Raipur). Prices have remained unchanged since last week and do not include GST @ 18%.
HRC prices continues to remain under pressure
Mills are offering rebates to attract buyers by providing price support to traders. Meanwhile, limited export orders and subdued domestic demand are pushing mills to correct prices.
- AMNSI has slashed prices by INR 2,000/t, offering HRCs at INR 68,400 to 68,500/t (exy-Mumbai).
- SAIL is offering a rebate of INR 2,000/t for July deliveries.
- TATA BSL is offering rebates of around INR 2,400/t for July.
This week, HRC trade prices edged down sharply by INR 1,500-2,000/t owing to the deferred procurements by traders in anticipation of further price corrections of HRCs.
SteelMint’s benchmark prices for 2.5 mm hot-rolled coils (HRCs) stand at INR 66,000-67,000/t (exy-Mumbai). The prices mentioned do not include GST @ 18%.
Housing sales surge 83% y-o-y in Q2
Residential sales in Q2 (April-June ’21) increased by 83% as compared to Q2 ’20, across the top seven cities. Improvement in sales was attributed to the low base effect, less stringent lockdowns, and accelerated vaccination drives during Q2, demonstrating improved resilience in the market following a good recovery curve.
However, the impact of the second wave of Covid-19 has been felt with sales in Q2 ’21 dipping by 23% to 19,635 units.
“If the downward trajectory in Covid-19 cases is sustained, the real estate sector is expected to make a healthy recovery in the second half of 2021,” said Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.
Outlook
HRC prices to remain under pressure owing to dull demand during the monsoon season. A long pause in construction activities and weak demand are likely to impact ERW pipes prices in the near-term.
Leave a Reply