India: ERW patra pipe prices show downward trend across major markets

• Raw material prices fall w-o-w amid sluggish demand
• Regional recovery may gain traction after festive season

ERW patra pipe (41-60 OD) prices declined w-o-w in Raipur and Mandi Gobindgarh. This is attributed to a fall in demand due to ongoing festivities in the country leading buyers to adopt a cautious approach and limit their purchases to essential needs only. Market sentiment weakened further due to persistent rainfall significantly dampening market activity and buyer interest.

ERW patra pipe prices in Mandi Gobindgarh and Raipur witnessed a downward. “The decline was driven by weak demand, worsened by stockists’ hesitation to restock amid expectations of an iron ore export duty”, said a source. Another source in Punjab informed, “The sluggish demand reflects the lingering effects of the flood, as recovery hasn’t been complete in some regions in the state.”

Moreover, d-o-d, prices dropped by INR 100/t d-o-d in Raipur on Friday. Similarly, prices in Mandi Gobindgarh slipped by INR 100/t compared to the previous day.

Current steel prices are INR 39,600/t in Raipur and INR 42,300/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly average prices:

Raipur and Mandi reported a decline in prices this week compared to last week.

Raipur: Prices declined by INR 300/t w-o-w to INR 39,600/t from INR 39,900/t on 26 September. Trade activities in the region remained sluggish.

Mandi: Prices decreased by INR 400/t w-o-w to INR 42,300/t on Friday as compared to INR 42,700/t on 26 September. Trade volumes of approximately 550 t were heard concluded this week, indicating low demand.

Raw materials price impact

HR strip (patra) prices stood at INR 39,100/t on 3 October, down by INR 500/t w-o-w against INR 39,600/t a week ago. Furthermore, patra prices in Mandi decreased by INR 500/t w-o-w to INR 41,300/t from INR 41,800/t last week.

Billet prices in Raipur fell by INR 550/t w-o-w to INR 36,050/t as compared to INR 36,600/t on 26 September. In addition, billet prices in Mandi went down by INR 100/t w-o-w to INR 39,700/t on 3 October from INR 39,800/t previous week.

Outlook

ERW patra pipe demand is likely to remain subdued in the short term, impacted by festive season caution and monsoon disruptions. Stockists are adopting a wait-and-watch approach, awaiting clarity on iron ore export duty, resulting in low trade volumes. Demand is expected to pick up once the festive season ends and regional recovery gains momentum.