India: ERW patra pipe prices decline in key markets amid weak demand

• Raipur, Mandi tags fall by up to INR 700/t w-o-w
• Hot-rolled steel strips, billet prices edge lower

ERW patra pipe (41-60 OD) prices showed a downtrend w-o-w in Raipur and Mandi Gobindgarh on weak demand in both markets. The improvement in trading in the initial days started declining from mid-week.

D-o-d, prices dropped by INR 100/tonne (t) in Raipur on Friday. On the other hand, prices in Mandi Gobindgarh stood unchanged compared to the previous day.

Current prices are at INR 41,000/t in Raipur and INR 44,500/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly price trends

Both locations reported a decline in prices this week as compared to last week.

Raipur: Prices declined by INR 700/t w-o-w to INR 41,000/t on Friday against INR 41,700 a week ago. Trade volumes of around 1,610 t were recorded this week.

Mandi: Prices edged down by INR 100/t w-o-w on Friday to INR 44,500/t from INR 45,600/t on 13 June. Trading activities for around 1,800 t were recorded this week.

Demand dull

Trading had been somewhat good at the beginning of the week. However, end-user demand started becoming a bit subdued later. Sellers, on their part, were keen to avoid inventory pile-ups and were keen to offload at lower offers. The weakening in raw material prices also weighed on prices.

Raw material price impact

Prices of key raw materials like hot-rolled strip (patra) and billets declined w-o-w in both Raipur and Mandi.

HR strip (patra) prices decreased by INR 700/t to INR 40,800/t exw Raipur as on 20 June against INR 41,500/t last week. Moreover, patra prices in Mandi slipped by INR 200/t to INR 43,500/t compared to INR 43,700/t last week.

Steel billet prices in Raipur edged down by INR 500/t w-o-w to INR 37,400/t exw on 20 June compared to INR 37,900/t on 13 June. Additionally, billet prices in Mandi recorded a drop of INR 200/t w-o-w to INR 41,300/t DAP on 20 June compared to INR 41,500/t last week.

Outlook

In the short term, prices are expected to stay subdued. Falling raw material prices and slow demand amid the monsoon are likely to add to the pressure on prices.