India: ERW patra pipe trade activities remain robust in key markets

Trade activities for electric resistance welded (ERW) patra pipes (41-60 OD) remained robust w-o-w in both Raipur and Mandi Gobindgarh. This was driven by lower offers and increased demand for finished steel. However, on a d-o-d basis, prices edged up by INR 200/tonne (t) in Raipur and by INR 100/t in Mandi Gobindgarh on 30 August 2024.

Currently, steel prices are at INR 41,800/t in Raipur and INR 43,700/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly, monthly averages:

Both locations reported lower average prices this week compared to the last week.

Raipur: Prices inched down by INR 100/t w-o-w to INR 41,800/t (down from INR 41,900/t). Trade volumes of around 5,000 t were recorded for patra pipes in Raipur this week. The monthly average for August was INR 42,000/t, a drop of INR 1,500 m-o-m from INR 43,500/t in July.

Mandi: Prices declined by INR 400/t to INR 43,700/t from INR 44,100/t a week ago. Trades in patra-based pipes were recorded at around 3,000 t this week. The monthly average fell by INR 2,200/t to INR 44,500/t against INR 46,700/t in July.

Demand-price improvement:

Steel markets rebounded this week, reversing the previous week’s decline in demand for both finished and semi-finished products. The surge in trade volumes points to a substantial improvement in buying activity, suggesting that market sentiment has taken a positive turn.

Raw material price impact:

HR strip (patra) prices inched down by INR 100/t w-o-w to INR 41,300/t exw-Raipur on 30 August compared to INR 41,400/t on 23 August. Similarly, patra prices in Mandi went down by INR 200/t w-o-w to INR 42,900/t as against INR 43,100/t a week ago.

Billet prices in Raipur edged down by INR 100/t w-o-w to INR 38,400/t exw-Raipur on 30 August compared to INR 38,500/t exw-Raipur a week back. However, billet prices in Mandi went up by INR 300/t w-o-w to INR 42,000/t exw compared to INR 41,700/t a week back.

Outlook:

The short-term outlook for the ERW patra pipe market appears to be positive, with increasing demand and a relatively stable pricing environment. However, it is important to monitor developments closely, as market conditions can change rapidly.