The current trade offers as of week 23 of CY ’21 for base grade ERW pipes (25-125 NB, 2.2-6 mm thickness) are assessed at INR 70,000/tonne (exy-Delhi), INR 71,250/t (exy-Mumbai) and INR 69,000/t (exy-Raipur). Prices have remained unchanged since last week and do not include GST @ 18%.
A pipe distributor from Raipur said, “APL Apollo Tubes is planning to announce another price hike by around INR 2,000/t ($27) on 7 June ’21, considering the upside in flat steel prices and limited raw material supply.”
At present, Tata Tubes is reported to be booking coil-based pipes at INR 71,500/t ($979), ex-Jharkhand for June ’21 deliveries, compared to the last revised price in May ’21 at INR 69,500/t ($952). Prices do not include GST @ 18%.
“The mill is planning to raise the list prices by INR 5,000/t ($67) in two tranches during the first and third week of this month. It will further increase pipes prices by INR 2,000/t ($27) from 7 June ’21 onwards, on account of the rising cost of pipe-making raw materials (hot-rolled coils) and limited supply of the same,” said a Tata Tubes distributor based in Delhi.
Uptick in ERW pipes prices:
Major mills have raised hot-rolled coils (HRC) and cold-rolled coils (CRC) prices due to buoyant global prices.
JSW Steel Ltd announced a significant hike in its list prices of HRC by INR 3,150/t to INR 70,000-70,500/t.
AM/NS India announced a steep hike in HRC prices by around INR 2,000/t. The current prices stand at INR 70,000-70,500/t.
Tata Steel Ltd significantly hiked its HRC prices by INR 4,500/t to INR 71,150-71,500/t.
SAIL increased its list prices of HRC by INR 5,000/t to INR 70,000-70,500/t.
Prices are on an exy-Mumbai basis, excluding GST @ 18%.
SteelMint’s benchmark prices for 2.5mm(HRC) increased by around INR 2,000/t against last week to INR 66,000-67,000/t(exy-Mumbai). The prices mentioned do not include GST @18%.
Will property prices rise?
There has been a steep jump in prices of key raw materials like iron ore and steel, owing to many domestic and international factors. This price hike may burden the developers and also limit their capacity to come up with any offers and discounts for the customers.
However, with the lifting of the lockdown, the movement of goods from one place to another might not be affected. Yet, the prices of construction raw materials are steadily inching up over the last couple of months. Thus, the housing segment may become costlier in the coming months.
Near-term outlook-
Once the lockdown restrictions ease completely, we will have a better understanding of whether the market can absorb the price hike or not. We are likely to see steel pipes prices surging in the near future, thereby impacting the housing sector’s growth.
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