ERW patra pipe (41-60 OD) prices showed mixed trends w-o-w in Raipur and Mandi Gobindgarh. Mandi saw an INR 200/t w-o-w drop in prices, while in Raipur prices rose by INR 400/t. This price movement comes alongside a short-lived pick-up in trading activity, which was relatively better last week.
D-o-d, prices weakened in both markets. Prices dropped by INR 100/t in Raipur on Friday, while tags in Mandi Gobindgarh slipped by INR 200/t d-o-d.
Current steel prices are INR 41,600/t in Raipur and INR 43,800/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.
Weekly average prices:
Mandi reported a decline in prices this week, while Raipur prices increased compared to last week.
Raipur: Prices increased by INR 400/t w-o-w to INR 41,600/t on Friday. Trade volumes of around 1,700-2,500 t were recorded this week compared with 3,500 t last week, indicating a slump in demand.
Mandi: Prices dropped by INR 200/t w-o-w on Friday to INR 43,800/t from INR 44,000/t on 7 February. Trading activities of around 1,000-1,500 t were observed compared with 2,000 t in the preceding week.
Demand weakens towards mid-week:
By the middle of the week, demand for ERW patra pipes started dropping with sellers in Raipur quoting higher in view of an improved sales scenario last week. Whereas those in Mandi Gobindgarh kept their offers stable in the beginning of the week compared to the preceding week’s closing. The inconsistency in demand weighed on the price levels pulling them lower towards the weekend, BigMint learnt from the sellers in both markets.
Raw materials price impact:
HR strip (patra) prices showed an INR 400/t increase w-o-w at INR 41,200/t exw Raipur as on 14 February. However, patra prices in Mandi fell by INR 200/t w-o-w to INR 43,000/t compared to INR 43,200/t last week.
A Raipur-based mill official reported that the conversion charge for billet to HR strip patra in Raipur currently stands at INR 1,300-1,800/t, with prices varying across plants due to demand-driven pricing. In contrast, the same charges in Mandi are significantly lower, ranging from INR 700-800/t.
Billet prices in Raipur rose by INR 500/t w-o-w to INR 39,300/t exw Raipur on 14 February compared to INR 38,800/t last week. On the contrary, billet prices in Mandi went down by INR 200/t w-o-w to INR 42,200/t exw Mandi compared to INR 42,400/t last week.
Outlook:
ERW patra pipe prices are likely to exhibit stability in the near term. The fluctuations in demand and trade volumes may hinder prices from increasing consistently. However, market participants show some optimism considering factors such as seasonal demand patterns, raw material price fluctuations and supply-demand dynamics of the market.
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