India: ERW patra pipe prices rise by up to INR 500/t w-o-w

• Inquiries and demand show slight improvement towards weekend
• Patra prices in Mandi Gobindgarh rise by INR 500/t w-o-w

Indian ERW patra pipe (41-60 OD) prices increased by INR 500/tonne (t) w-o-w in Mandi Gobindgarh. However, the same remained rangebound for the Raipur market.

The climatic conditions had kept the trading activities low in both markets in the first few days of the week.

“Demand has improved a bit towards the weekend after having remained low initially because of the heavy rainfall in the northern regions,” a north-based participant said. The inflow of inquiries was also observed to have increased by mid-week in Raipur, but converting the same to sales remained a challenging task.

Raipur: Prices remained rangebound at INR 40,300/t on Friday against a week ago. Trade volumes of 905 t were recorded this week.

Mandi: Prices rose by INR 500/t w-o-w to INR 43,000/t on 5 September against INR 42,500/t on 29 August. Trade volumes of 2,760 t were recorded this week.

D-o-d price trends

D-o-d, prices were marginally up by INR 200/t in Raipur against INR 40,100/t, while an increase of around INR 800/t was recorded in Mandi Gobindgarh against INR 42,200/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 showed slight improvement in Raipur on a weekly comparison. However, billet prices were slightly lower in the Mandi market compared to the previous week.

HR strip (patra) prices remain unchanged at INR 40,100/t exw-Raipur as of 5 September, compared to last week. Meanwhile, the same increased by INR 500/t to INR 42,000/t exw-Mandi as on 5 September against INR 41,500/t last week.

Steel billet prices in Raipur were up by INR 350/t w-o-w to INR 36,950/t exw on 5 September compared with INR 36,600/t in the previous week. However, billet prices in Mandi were assessed at INR 39,200/t DAP on 5 September, trailing behind by INR 200/t w-o-w against INR 39,400/t DAP on 29 August.

Outlook

ERW patra pipe prices are expected to stay firm in the near term with improving demand and rising inquiries. The post-monsoon pickup, fund releases for infrastructure and civil construction projects and the acceleration of activities by construction houses before Diwali are likely to support buying. Meanwhile, price negotiations may cause some fluctuations; a major price drop this month appears unlikely.