- Higher raw material costs continue to support pipe prices
- Trading improves, but buyers grow cautious as rally continues
ERW patra pipe prices (41-60 mm OD) rose w-o-w across key regions in the week ended 27 August 2026. Rising input costs increased production costs for pipe manufacturers, prompting suppliers to raise offers, while improved demand provided further support to prices.
A similar trend was observed on a d-o-d basis. In Raipur, prices increased by INR 1,000/t to INR 48,600/t Exw on 27 Aug from INR 47,600/t on 26 August. Similarly, prices in Mandi Gobindgarh rose by INR 1,000/t to INR 51,500/t Exw on 27 August from INR 50,500/t exw a day earlier. Listed prices are ex-works (exw) and exclude 18% GST.
Weekly price trends
Raipur: ERW patra pipe prices in Raipur surged by INR 1,900/t w-o-w to INR 48,600/t Exw on 27 August from INR 46,700/t a week earlier. The increase was primarily driven by higher raw material prices, which raised production costs for pipe manufacturers and prompted suppliers to increase offers. The initial price rise encouraged buyers to step up purchases, supporting trading activity and providing additional support to prices. However, buying interest softened towards the weekend as buyers became increasingly cautious about purchasing at higher levels, while the festive-related slowdown ahead of Rakshabandhan further weighed on trading activity across the region.
A Raipur-based source stated, “The sharp rise in prices prompted most buyers to cover their requirements at earlier, lower levels, reducing their urgency to purchase at current prices. Buyers are now assessing the sustainability of the rally before making further purchases. Meanwhile, a festive-related slowdown has further weighed on trading activity, keeping market participation relatively limited.”
Mandi Gobindgarh: ERW patra pipe prices in Mandi Gobindgarh increased by INR 1,700/t w-o-w to INR 51,500/t Exw on 27 August from INR 49,800/t a week earlier, led by higher raw material prices, particularly scrap. A Mandi-based source stated that improved scrap arrivals and a marginal relaxation in GST checking encouraged mills to increase procurement and replenish stocks. The resulting increase in buying activity supported higher scrap prices.
Higher scrap prices subsequently raised input costs for pipe manufacturers, increasing their production costs. At the same time, steady buying interest allowed suppliers to maintain higher offers. The combination of rising raw material costs and steady finished steel buying resulted in the sharp weekly increase in pipe prices.
Raw material prices
HR strip (patra): HR strip (patra) prices in Raipur surged by INR 2,000/t w-o-w to INR 48,000/t exw on 27 August from INR 46,000/t on 21 August. Similarly, prices in Mandi Gobindgarh increased by INR 1,700/t w-o-w to INR 50,500/t exw on 27 August from INR 48,800/t a week earlier.
Billet: Billet prices in Raipur surged by INR 1,150/t w-o-w to INR 41,700/t Exw on 27 August from INR 40,550/t a week earlier. Meanwhile, billet prices in Mandi Gobindgarh increased by INR 1,300/t w-o-w to INR 45,300/t DAP on 27 August from INR 44,000/t on 21 August.
Outlook
ERW patra pipe prices are likely to remain firm in the coming days, as elevated HR strip and billet prices continue to raise production costs and support higher offers from manufacturers. Buying activity improved initially; however, the sharp price rally has increased buyer caution, prompting buyers to reassess purchases at current price levels. Overall, prices are expected to remain firm, although further increases may be limited unless raw material prices continue to rise or buying activity strengthens.
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