India: ERW patra pipe prices show mixed trends w-o-w amid weak market sentiments

• Demand soft in Mandi but picks up by weekend
• Raipur continues to see sluggish trade activity

ERW patra pipe (41-60 OD) prices showed mixed trends w-o-w in Raipur and Mandi Gobindgarh due to weak demand and need-based buying.

W-o-w price trends

Raipur: Prices declined by INR 400/t w-o-w to INR 40,100/t on Friday against INR 40,500 a week ago. Trade activities remained slow amid weak demand in the market, sources informed BigMint.

Mandi: Meanwhile, prices stayed flat w-o-w at INR 44,100/t on 4 July. Buyers in Mandi adopted a wait-and-watch approach in anticipation of a further price drop. Moreover, inquiries stayed limited towards the beginning of the week, though demand improved slightly towards the end.

D-o-d price trends

D-o-d, prices dropped by INR 200/tonne (t) in Raipur to INR 40,100/t on 4 June against INR 40,300/t. Meanwhile, prices in Mandi Gobindgarh dropped by INR 100/t d-o-d to INR 44,100/t against INR 44,200/t a day ago. Listed prices are ex-works (exw), excluding 18% GST.

Raw material price impact

Prices of key raw materials such as hot-rolled strips (patra) and billets continued to drop on a w-o-w basis in both Raipur and Mandi.

HR strip (patra) prices decreased by INR 300/t to INR 40,000/t exw-Raipur as on 4 July against INR 40,300/t last week. However, patra prices in Mandi remained stable w-o-w at INR 43,100/t.

Steel billet prices in Raipur edged down by INR 300/t w-o-w to INR 36,750/t exw on 4 July compared to INR 37,050/t on 27 June. Additionally, billet prices in Mandi recorded a drop of INR 150/t w-o-w to INR 40,850/t DAP on 4 July compared to INR 41,000/t last week.

Outlook

ERW patra pipe prices are expected to remain weak in the near term amid falling raw material prices. Buyers are likely to maintain a cautious approach. Moreover, the ongoing monsoon may further weigh on market sentiment.