India’s leading structural steel tubes manufacturer, headquartered in northern India, is likely to announce a price hike of INR 1,000/t in the second week of Nov’21, sources informed SteelMint.
Current trade offers for base grade ERW pipes (25-125 NB, 2.2-6 mm thickness) are assessed at INR 74,000/t exy-Delhi, at INR 74,250/t exy-Pune and at INR 72,000/t exy-Raipur. These prices are unchanged since last week and do not include GST at a rate of 18%.
A Raipur-based pipes distributor stated: “The sales will be affected during Diwali, although this will only be temporary.”
“The prices of tubes had increased by INR 3,000/t effective from 1 Nov’21. Hence, customers are busy purchasing pipes and tubes currently before the next price hike is announced,”said a Delhi-based Tata Tubes distributor.
At present, Tata Tubes is reported to be booking coil-based pipes at INR 76,000/t ($1,019/t), ex-Jharkhand, for November deliveries, compared to the last revised price in October which stood at INR 73,000-74,300/t ($976-994/t), ex-Jharkhand. Prices do not include GST at 18%.
Surging HRC prices
Indian steel mills have raised prices of hot-rolled coils (HRCs) by INR 2,000-2,500/t ($27-33/t) for Nov’21 on higher cost push. The hike in prices is attributed to surging prices of coking coal, met coke and ferro alloys, besides increasing restocking activities.
On the exports front, Indian mills have not concluded any significant export bookings in the last three months while November looks bleak.
As the current domestic demand is dull, stockists still need to liquidate the existing trade-level inventory to return to the market.
SteelMint’s benchmark trade reference price assessment for hot rolled coils (HRCs) (IS 2062, 2.5-8 mm) stands at around INR 71,000-72,000/t (exy-Mumbai).Prices mentioned are exclusive of GST @18%.
Registration of homes in Mumbai up 8% y-o-y in Oct
Mumbai witnessed an 8% rise in registration of housing properties in October at 8,576 units, compared to 7,929 units in the year-ago period, as homes sales continue to see momentum this year, according to Knight Frank India.
Sequentially, the registration of housing properties in Mumbai, rose by 10% In October compared to September, signifying buoyancy in demand.
“The healthy growth in residential property registrations is a sign of recovering markets. A consistent increase in the last few months demonstrates the strength of demand despite the roll-back of the government’s stamp duty, which had been a demand stimulant,” said Gulam Zia, Senior Executive Director, Knight Frank India.
The historically low interest rates on home loans, lucrative festive offers along with flexible payment options and better consumer awareness have transformed the Mumbai real estate sector into a buyer’s market.
Near-term outlook
Domestic HRC trade prices are likely to increase, supported by rising demand, given the current market scenario, SteelMint learned from market participants.
Thus, ERW pipes prices are likely to increase in the near term on account of rising raw material prices in the domestic market.
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