- Pipe prices stable in Mandi Gobindgarh, drop in Raipur
- Billet prices in Mandi Gobindgarh rise by INR 400/t w-o-w
Indian ERW patra pipe (41-60 OD) remained rangebound in Mandi Gobindgarh, while prices were lower by INR 300/t in Raipur. Markets opened with higher offers on Monday in both regions and then gradually declined amid cautious buying approach seen during the week.
“Erratic climatic conditions, changes in the Goods and Service Tax (GST) and market chatter related to likely imposition of export duty on iron ore kept buyers cautious, with some moving to the sidelines by delaying procurement,” a central India-based market participant said.
Inquiries picked up towards the weekend in Mandi; however, the conversion to trades remained low. Raipur, on the other hand, lacked in both trades and inquiries this week.
Raipur: Prices were lower by INR 300/t at INR 40,000/t on Friday, compared to INR 40,300/t a week ago.
Mandi: Prices remained rangebound at INR 43,000/t on 12 September against the previous week. Trade volumes of 2,180 t were recorded this week.
D-o-d price trends
D-o-d, prices declined by INR 400/t in Raipur against INR 40,400/t, while it was a nascent INR 200/t in Mandi Gobindgarh against INR 43,200/t. 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 showed varying movements in Raipur and Mandi Gobindgarh markets on a weekly comparison.
HR strip (patra) prices fell by INR 300/t to INR 39,800/t exw-Raipur as of 12 September, compared to INR 40,100/t last week. Meanwhile, the same remained unchanged w-o-w at INR 42,000/t exw-Mandi as on 12 September.
Steel billet prices in Raipur were down by INR 100/t w-o-w to INR 36,850/t exw on 12 September compared with INR 36,950/t in the previous week. However, billet prices in Mandi were assessed at INR 39,600/t DAP on 12 September, up by INR 400/t w-o-w against INR 39,200/t DAP on 5 September.
Outlook
ERW patra-based pipe prices are likely to fluctuate in a narrow band until there is an improvement in demand and it sustains. The current scenario of caution amongst buyers around sporadic rainfall, changes in the GST and the market buzz about export duty on iron ore has kept the market sentiments tilted to the lower side. Market participants are still optimistic about an improvement in demand in the coming days, but are doubtful about its sustainability over a longer duration.
Leave a Reply