- Buyers reduce purchases amid ample inventories
- Billet, patra prices drop by up to INR 300/t w-o-w
ERW patra pipe (41-60 OD) prices dropped w-o-w in Raipur and Mandi Gobindgarh, as market sentiments softened with buyers slowing down their procurement. The number of trade inquiries was lower this week, market participants highlighted.
“Buying activities were better in the previous week. Most buyers have ample material at their disposal, so buying activities slowed down this week,” informed a distributor from the north.
W-o-w price trends
Raipur: Prices fell by INR 300/tonne (t) w-o-w to INR 41,100/t on Friday against INR 41,400/t a week ago.
Mandi: Prices edged down by INR 100/t w-o-w to INR 43,800/t on 8 August against INR 43,900/t on 1 August.
D-o-d price trends
D-o-d, prices were lower by INR 200/t in both Raipur and Mandi Gobindgarh. 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 declined through the week in both Raipur and Mandi.
HR strip (patra) prices edged lower by INR 300/t w-o-w to INR 40,900/t exw-Raipur as on 8 August against INR 41,200/t last week. Patra prices nudged down by INR 100/t to INR 42,800/t exw-Mandi as on 8 August against INR 42,900/t last week.
Steel billet prices in Raipur decreased by INR 50/t to INR 37,500/t exw on 8 August, compared to INR 37,550/t on 1 August. Additionally, billet prices in Mandi were down by INR 200/t w-o-w to INR 40,500/t DAP on 8 August compared to INR 40,700/t last week.
Outlook
ERW patra pipe prices are likely to move in a narrow band in the upcoming week. With holidays in the upcoming week and buyers having decently booked material in the preceding one, momentum will be slow. However, market participants are hopeful that the demand will improve by the third week of the month.
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