A major ERW pipe manufacturer, specialising in HRC-based products, has implemented an upward price revision for its base-grade pipe (25-125 NB, 2.2-6 mm) for early-May 2024 sales, sources informed BigMint.
Following this adjustment, prices now stand at INR 62,500/t ($749/t) exw-Raipur, excluding 18% GST. This marks an increase of approximately INR 1,000/t ($12/t) m-o-m in Raipur. It is worth noting that the company had hiked prices by INR 1,000/t ($12/t) m-o-m for April sales as well.
Moreover, the manufacturer has also increased prices for the Hyderabad region. However, prices remain stable m-o-m in the Delhi region. Current prices now stand at INR 63,500/t ($760/t) for Hyderabad and INR 64,500/t ($772/t) for Delhi. These prices are ex-works (exw), excluding 18% GST.
In Raipur, distributor-level prices for ERW pipe remained stable w-o-w at INR 60,500/t ($707/t) in the first week of May as compared end-April.
Trade-level HRC prices rise m-o-m
Monthly average prices for trade-level HRC, which is a key raw material for ERW pipe, have remained range-bound m-o-m to INR 52,600/t ($630/t) ex-Mumbai against INR 52,800/t ($632/t) in March.
To deal with sluggish demand in both the domestic and international markets, several Indian steel mills strategically opted for maintenance shutdowns in April. Some major mills plan similar maintenance activities this in May. These shutdowns aim to reduce inventory stockpiles.
India’s exports of bulk HRC are slowing down, as per vessel line-up data maintained with BigMint. However, imports continue to edge closer to the last month’s level.
Market prices for HRC products set by traders are expected to see a gradual increase in the coming week. This rise is likely due to the anticipation of a price increase by steel mills for May and maintenance shutdowns taking place during the month.
Outlook:
Despite increase in list prices, distributor prices for ERW pipes in Raipur held steady in the first week of May, but further upward revisions are likely as producers may hike prices, with the primary mills announcing a hike in HRC list prices for May.