ERW patra pipe (41-60 OD) prices rose w-o-w in both Raipur and Mandi Gobindgarh amid hike in raw material prices in both the markets. Moreover, slight improvement in trading activities were seen in both the markets compared to the previous week. Furthermore, prices increased by INR 500/tonne (t) d-o-d on 3 May 2024 in Raipur and Mandi Gobindgarh.
Current steel prices are INR 47,900/t in Raipur and INR 49,600/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.
Weekly, monthly average prices:
Both locations reported hike in prices this week as compared to the last week.
Raipur: Prices increased by INR 1,500/t w-o-w on Friday to INR 47,900/t from INR 46,400/t on 26 April. Moreover, the monthly average price also increased in May to INR 47,700/t (up from INR 46,400/t in April). Trade volumes of around 5,000 t were recorded for patra pipe in Raipur this week. Only, slight improvement were seen in trade activities this week amid sharp increase in prices.
Mandi: Prices went up by INR 1,300/t to INR 49,600/t on Friday from INR 48,300/t on 26 April. Furthermore, the monthly average prices in May rose to INR 49,300/t against INR 48,600/t in April. Trades in patra-based pipes were around 3,500 t this week.
Demand-price improvement:
Steel markets rebounded this week, reversing the prior week’s decline in demand for both finished and semi-finished products. The increase in trade volumes suggests a moderate improvement in buying activity. Additionally, ERW patra pipes prices climbed due to surge in raw material costs.
Raw materials price impact:
Prices of key raw materials like hot-rolled strip (patra) and billets have increased significantly in both Raipur and Mandi compared to the last week.
HR strip (patra) prices increased by INR 1,500/t w-o-w to INR 47,400/t exw Raipur as on 3 May compared to INR 45,900/t exw Raipur on 26 April. Similarly, patra prices in Mandi rose by INR 1,500/t w-o-w to INR 48,800/t as against INR 47,300/t a week ago.
Billet prices in Raipur have also increased by around INR 1,700/t w-o-w to INR 44,500/t exw Raipur on 3 May compared to INR 42,800/t exw Raipur a week back. Moreover, billet prices in Mandi went up by INR 1,100/t w-o-w to INR 47,500 exw today compared to INR 46,400/t last week.
Outlook:
Prices of key raw materials like hot-rolled strip (patra) and billets have increased significantly in both Raipur and Mandi compared to the last week, putting an upward pressure on ERW patra pipe prices.
Overall, the outlook for the ERW patra pipe market is cautiously optimistic. While some improvement is evident, long-term price stability will depend on the interplay of raw material costs and overall steel demand.