ERW patra pipe (41-60 OD) prices dropped w-o-w in both Raipur and Mandi Gobindgarh amid sluggish market demand and trade activities for finished steel in both the markets. In addition, declining raw material prices in the key markets pushed pipe prices down. Furthermore, prices saw a decrease of INR 200/tonne (t) d-o-d on 26 July 2024 in Raipur and by INR 100/t d-o-d in Mandi Gobindgarh.
Current steel prices are INR 42,400/t at Raipur and INR 45,900/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.
Weekly and monthly average prices:
Both locations reported decline in prices this week as compared to the last week.
Raipur: On a w-o-w basis, price decreased by INR 600/t on Friday to INR 42,400/t from INR 43,000/t on 19 July. Trade volumes of around 2,500 t were recorded for patra pipe in Raipur this week. The current slowdown in demand and the possibility of future price decreases have had significant impact on trading activity. Moreover, monthly average prices of patra based pipes declined by INR 3,100/t to 43,500/t in July against INR 46,600/t in June 2024.
Mandi: Prices went down by INR 700/t to INR 45,900/t on Friday from INR 46,600/t on 19 July. Trades in patra-based pipes were recorded around 1,500 t this week. Moreover, monthly average prices of patra based pipes declined by INR 1,100/t to 46,800/t in July against INR 47,900/t in June 2024.
Demand-price drop:
The steel market is experiencing a slowdown. Demand for both finished and semi-finished steel products have weakened considerably this week after a slight decline last week. Despite falling prices, buyers are holding off on purchases, anticipating further price reductions. Additionally, the cost of ERW patra pipes has decreased due to fall in raw materials prices.
Raw material price impact:
Prices of key raw materials like hot-rolled strip (patra) and billets have decreased significantly in both Raipur and Mandi compared to the last week.
HR strip (patra) prices decreased by INR 600/t w-o-w to INR 41,900/t exw Raipur as on 26 July compared to INR 42,500/t exw Raipur on 19 July. Similarly, patra prices in Mandi dropped by INR 600/t w-o-w to INR 44,900/t as against INR 45,500/t a week ago.
Billet prices in Raipur have decreased by around INR 300/t w-o-w to INR 38,600/t exw Raipur on 26 July compared to INR 38,900/t exw Raipur a week back. Moreover, billet prices in Mandi went down by INR 400/t w-o-w to INR 42,800 exw on Friday compared to INR 43,200/t a week back.
Outlook:
The ERW patra pipe market is currently facing a challenging period due to weak demand and declining raw material prices. While prices have dropped significantly this week, the market remains cautious. However, a slight uptick in demand was observed on Friday evening indicates a potential for a modest improvement in ERW patra pipe demand in the near term.
The market’s recovery will largely depend on the overall steel market’s performance and any changes in end-user consumption patterns. If demand picks up and raw material prices stabilise, we might see a gradual price correction and increased trading activity in the coming weeks.
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