- Trade improves as prices start to rise early this week
- Billet, patra prices increase by up INR 1,800/t w-o-w
ERW patra pipe (41-60 OD) prices spiked w-o-w in Raipur and Mandi Gobindgarh, as market sentiments turned upbeat amid the rising trend in raw material tags. Trade activities also improved, as buyers came out to procure as prices started to rally early this week.
W-o-w price trends
Raipur: Prices surged by INR 1,800/tonne (t) w-o-w to INR 42,000/t on Friday against INR 40,200/t a week ago. Trade volumes of around 3,900 t were recorded this week.
Mandi: Prices rose by INR 600/t w-o-w to INR 44,100/t on 25 July against INR 43,500/t on 18 July. Trade activities for around 4,570 t were recorded this week.
D-o-d price trends
D-o-d, prices increased by INR 1,200/t in Raipur, while tags in Mandi Gobindgarh climbed up by INR 400/t d-o-d. 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 rallied through the week in both Raipur and Mandi.
HR strip (patra) prices rose by INR 1,800/t w-o-w to INR 41,700/t exw-Raipur as on 25 July against INR 39,900/t last week. Patra prices rose a decent INR 600/t to INR 43,200/t exw-Mandi as on 25 July against INR 42,600/t last week.
Steel billet prices in Raipur soared by INR 1,400/t to INR 38,100/t exw on 25 July, compared to INR 36,700/t on 18 July. Additionally, billet prices in Mandi were up by INR 650/t w-o-w to INR 40,850/t DAP on 25 July compared to INR 40,200/t last week.
Outlook
ERW patra pipe prices are likely to remain at the current price levels or even rise a bit in the near term, following the uptrend in raw material tags and improved buying interest. However, some market participants are concerned about a further uptrend in prices, as they fear the demand will slow down after a spike this week.
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