- Prices in Raipur, mandi fall up to INR 800 w-o-w
- Hot-rolled steel strip, 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 due to which a decline in trading activities was seen compared to last week.
D-o-d, prices dropped by INR 200/tonne (t) in Raipur on Friday. Additionally, prices in Mandi Gobindgarh slipped by INR 200/t compared to the previous day.
Current prices are INR 41,700/t in Raipur and INR 44,600/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 800/t w-o-w to INR 41,700/t on Friday against INR 42,500 a week ago. Trade volumes of around 1,200 t were recorded this week.
Mandi: Prices went up by INR 600/t w-o-w on Friday to INR 44,600/t from INR 45,200/t on 6 June. Trading activities for around 1,000 t were recorded this week.
Sluggish demand
Despite price cuts offered in both markets, sales remained sluggish. This weak response is likely due to lower consumer demand and drop in raw material 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 41,500/t exw Raipur as on 13 June against INR 42,200/t last week. Moreover, patra prices in Mandi slipped by INR 500/t to INR 43,700/t compared to INR 44,200/t last week.
Steel billet prices in Raipur edged down by INR 700/t w-o-w to INR 37,900/t exw on 13 June compared to INR 38,600/t on 6 June. Additionally, billet prices in Mandi recorded a drop of INR 200/t w-o-w to INR 41,500/t DAP on 13 June compared to INR 41,700/t last week.
Outlook
In the short term, prices are expected to stay subdued amid sluggish demand and falling raw material costs. However, a slight recovery could occur if buying interest improves.
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