ERW patra pipe (41-60 OD) prices showed mixed trends w-o-w in Raipur and Mandi Gobindgarh this week. Raipur saw a decrease in prices, while Mandi Gobindgarh showed slight improvement. 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. In addition, on a d-o-d basis, prices increased by INR 600/tonne (t) on 28 June in Raipur and by INR 1,100/t in Mandi Gobindgarh.
Current steel prices are INR 44,700/t in Raipur and INR 47,100/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.
Weekly, monthly average prices:
Raipur reported a decline in prices this week, while Mandi prices increased as compared to the last week.
Raipur: Prices dropped by INR 600/t w-o-w on Friday to INR 44,700/t from INR 45,300/t on 21 June. Monthly average prices for patra-based pipes in June declined by INR 1,200/t to INR 46,700/t against INR 47,900/t in May. Trade volumes of around 5,000 t were recorded this week, indicating demand improvement.
Mandi: Prices went up by INR 3,00/t to INR 47,100/t on Friday from INR 46,800/t, a week ago. Trading activities of around 3,000 t in patra-based pipes were recorded this week. However, monthly average prices in June declined by INR 500/t to INR 48,600/t against INR 49,100/t in May.
Demand improvement:
Steel prices dipped at the beginning of the week in both Mandi Gobindgarh and Raipur to attract buyers. However, the trend reversed in Mandi Gobindgarh by mid-week as demand picked up. In Raipur, demand for finished steel improved later in the week, with most trading activity happening on Thursday and Friday.
Raw materials price impact:
Prices of key raw materials like hot-rolled strip (patra) and billets have declined in Raipur, while increased in Mandi compared to the last week.
HR strip (patra) prices decreased by INR 600/t w-o-w to INR 44,200/t exw Raipur as on 28 June compared to INR 44,800/t exw Raipur on 21 June. However, patra prices in Mandi went up by INR 500/t w-o-w to INR 46,300/t as against INR 45,800/t a week ago.
Billet prices in Raipur decreased by INR 500/t w-o-w to INR 40,700/t exw Raipur on 28 June. In addition, billet prices in Mandi went down by INR 500/t w-o-w to INR 44,200 exw Mandi compared to INR 44,700/t last week.
Outlook:
Both, Mandi Gobindgarh and Raipur could experience price increases in patra-based pipes as demand picks up and raw material prices rise. Overall, trade activity is improving, suggesting a potential rise in demand in the near-term across both markets.
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