India: ERW patra pipe prices drop by INR 200/t w-o-w; sentiments remain weak

• Post-holidays, trade activities show little improvement
• Billet prices drop up to INR 300/t w-o-w

ERW patra pipe (41-60 OD) prices edged down by INR 200/t week-on-week (w-o-w) in Raipur and Mandi Gobindgarh. The restocking spree that was observed in the pre-holiday period was lacking in the current week. There were fewer inquiries on most of the days this week as buyers stood on the sidelines and procured only as per their urgent requirements.

Price trends

Raipur: Prices declined by INR 200/tonne (t) w-o-w to INR 41,200/t on Friday against INR 41,400/t a week ago. Trade volumes of 890 t were recorded this week.

Mandi: Prices fell by INR 200/t w-o-w to INR 43,500/t on 14 August against INR 43,700/t on 14 August. Trade volumes of 2,150 t were recorded this week.

D-o-d price trends

D-o-d, prices remained rangebound in Raipur. However, dropped by a notional INR 100/t in Mandi Gobindgarh against INR 43,600/t. Listed prices are ex-works (exw), excluding 18% GST.

Raw material price impact

Prices of key raw materials such as hot-rolled strips (patra) and billets also dropped in Raipur and Mandi markets.

HR strip (patra) prices dropped by INR 200/t w-o-w to INR 41,000/t exw-Raipur as on 22 August against INR 41,200/t last week. Meanwhile, patra prices dropped by the same quantum of INR 200/t to INR 42,500/t exw-Mandi as on 22 August against INR 42,700/t last week.

Steel billet prices in Raipur dropped a notional INR 50/t w-o-w at INR 37,450/t exw on 22 August. On similar lines, billet prices in Mandi were assessed at INR 40,200/t DAP on 22 August, down by INR 300/t w-o-w against INR 40,500/t DAP on 14 August.

Outlook

ERW patra pipe prices are likely to remain rangebound or flutter in a narrow band in the near term. The anticipation about a pickup in demand in the latter half of the month has been washed away, and market participants are now hoping for the trade activities to pick up pace in the first fortnight of September. For the upcoming week, market participants are uncertain about the price trend as demand might remain low amid the approaching festive period of Ganesh Chaturthi.