India: ERW patra pipe prices show mixed trends as trade picks up slightly

• Prices likely to stay range-bound in near term
• Caution persists as further price drops expected

ERW patra pipe (41-60 OD) prices showed mixed trends w-o-w in Raipur and Mandi Gobindgarh. Mandi saw a rise in prices, while in Raipur, tags slipped w-o-w. These movements come alongside a slight pick-up in trading activity due to sellers offering lower prices.

D-o-d, prices dropped by INR 300/tonne (t) in Raipur on Friday. Additionally, prices in Mandi Gobindgarh slipped by INR 100/t compared to the previous day.

Current prices are INR 42,500/t in Raipur and INR 45,200/t in Mandi Gobindgarh. Listed prices are ex-works (exw), excluding 18% GST.

Weekly price trends

Raipur: Prices declined by INR 400/t w-o-w to INR 42,500/t on Friday. Trade volumes of around 2,300 t were recorded this week.

Mandi: Prices went up by INR 400/t w-o-w on Friday to INR 45,200/t from INR 44,800/t on 30 May. Trading activities for around 1,000-1,200 t were recorded this week.

Market updates

Demand improves: ERW patra pipe prices in Raipur and Mandi fell at the beginning of the week following subdued demand as buyers adopted a cautious stance, anticipating further price reductions. However, a market reversal occurred mid-week, as buying activity accelerated slightly in response to adjusted prices. Furthermore, increased demand for raw materials such as billets and hot-rolled (HR) strips provided additional support to the market.

Raw materials price impact

HR strip (patra) prices decreased by INR 500/t to INR 42,200/t exw Raipur as on 7 June against INR 42,700/t last week. However, patra prices in Mandi went up by INR 300/t to INR 44,200/t compared to INR 43,900/t last week.

Steel billet prices in Raipur went down by INR 450/t w-o-w to INR 38,500/t exw on 7 June, compared to INR 38,950/t on 31 May. Additionally, billet prices in Mandi recorded a marginal drop of INR 50/t w-o-w to INR 41,650/t DAP on 7 June, compared to INR 41,700/t last week.

Outlook

In the near term, ERW patra pipe prices are expected to stay range-bound. While Mandi Gobindgarh witnessed a price uptick driven by improved trade activity and firm HR strip rates, Raipur continues to face mild pressure despite signs of demand recovery. Additionally, some market participants remain cautious, holding off purchases in expectation of further price corrections.