- Unexpected rains, Karwa Chauth pressure demand
- Falling raw material prices reduce cost support
Indian electric resistance welded (ERW) patra pipes (41-60 OD) dropped w-o-w in Raipur, while in Mandi Gobindgarh, tags remained stable. Unexpected rainfall in these regions was the primary cause, creating sluggish demand and slowing trade for finished steel.
The downtrend was also supported by declining raw material prices. “Market activity in Mandi was further subdued by a one-day bank closure for Valmiki Jayanti,” a BigMint source noted. Meanwhile, in Raipur, another source indicated that “buyers are anticipating further price drops, leading to fewer current bookings.”
The ERW pipe market is currently experiencing a significant slowdown ahead of upcoming festivals. Following a slight decline last week, demand for both finished and semi-finished steel products weakened considerably this week. Despite a slight uptick in demand midweek, demand subsequently dropped again due to the Karwa Chauth festival.
Prices in Raipur remained stable d-o-d on Friday. However, in Mandi, on a d-o-d basis, prices increased by INR 200/tonne (t) on 10 October 2025. Prices were at INR 39,100/t at Raipur and INR 42,000/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.
Weekly average prices
Raipur: Prices declined by INR 500/t w-o-w to INR 39,100/t from INR 39,600/t on 3 October 2025. A deal of approximately 2,000 t for patra pipes (41-60 OD) was heard concluded in the middle of the week at INR 39,000/t.
Mandi: Prices decreased by INR 300/t w-o-w to INR 42,000/t as compared to INR 42,300/t on 3 October 2025. Moreover, 5,000 t of patra pipes (41-60 OD) were reportedly booked at higher levels, reaching INR 44,700/t.
Raw material price trend
Prices of key raw materials such as hot-rolled strips (patra) and billets decreased significantly in both Raipur and Mandi compared to last week.
HR strip (patra) prices in Raipur stood at INR 38,500/t, representing a sharp decline of INR 600/t w-o-w from INR 39,100/t last week. Moreover, patra prices in Mandi decreased by INR 300/t w-o-w to INR 41,000/t as compared to INR 41,300/t on 3 October 2025.
Billet prices in Raipur fell by INR 550/t w-o-w to INR 35,500/t on 10 October 2025 exw as compared to INR 36,050/t exw a week ago. Similarly, billet prices in Mandi dropped by INR 500/t w-o-w to INR 39,200/t from INR 39,700/t on 3 October 2025.
Outlook
The short-term outlook for the steel market is weak, with subdued activity driven by a combination of factors. Demand is expected to remain soft in the near term, negatively impacted by the approaching festive season and seasonal rainfall disruptions. Concurrently, declining raw material costs and demand volatility will contribute to downward pressure on steel prices.
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