ERW patra pipe (41-60 OD) prices declined w-o-w in both Raipur and Mandi Gobindgarh amid a slowdown in finished steel demand in both markets due to which a decline in trading activities was seen in these markets compared to last week. Furthermore, prices decreased by INR 500/tonne (t) d-o-d in Raipur and by INR 800/t d-o-d in Mandi Gobindgarh on 5 July.
Current steel prices are INR 44,000/t in Raipur and INR 47,000/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.
Weekly price drop:
Both locations reported a decline in prices this week as compared to last week.
Raipur: Prices dropped by INR 700/t w-o-w on Friday to INR 44,000/t from INR 44,700/t on 28 June. Decline in trading activities was seen in Raipur, due to a slowdown in finished steel demand.
Mandi: Prices inched down by INR 100/t to INR 47,000/t on Friday from INR 47,100/t, a week ago. Trading activites in patra-based pipes in the market remained dull.
Demand drops:
Despite price cuts offered in both markets, sales remained sluggish. This weak response is likely due to lower consumer demand and already sufficient inventory levels. In a separate development, ERW patra pipe prices fell in response to declining raw material costs.
Raw materials price impact:
Prices of key raw materials like hot-rolled strip (patra) and billets have declined w-o-w in both Raipur and Mandi.
HR strip (patra) prices decreased by INR 700/t w-o-w to INR 43,500/t exw Raipur as on 5 July compared to INR 44,200/t exw Raipur on 28 June. Similarly, patra prices in Mandi dropped INR 300/t w-o-w to INR 46,000/t as against INR 46,300/t a week ago.
Billet prices in Raipur decreased by INR 800/t w-o-w to INR 39,900/t exw Raipur on 5 July. In addition, billet prices in Mandi went down by INR 400/t w-o-w to INR 43,800 exw Mandi compared to INR 44,200/t last week.
Outlook:
ERW patra prices may stabilise or witness a slight uptick if demand picks up. However, a significant increase is unlikely without a major shift in market conditions.
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