In major markets such as Raipur and Mandi Gobindgarh, ERW Patra pipe prices fell week-on-week (w-o-w), largely due to poor demand supported by price levels resulting from the festive slowdown, as well as recent rainfall impacting market sentiment and pipeline activity. Buyers were curtailing purchases to only those that were immediate needs and adjusting activity in futures contracts based on weak activity, with the weather affecting trade. In Raipur, prices fell ₹300/t to ₹ 39,600/t, and in Mandi Gobindgarh, prices fell more aggressively by ₹400/t to ₹42,300/t. Raw material prices followed suit as HR strips fell by ₹500/t and billets also fell by ₹550/t in Raipur. Hesitancy among stockists, driven by uncertainty over a potential iron ore export duty, further suppressed restocking activity.

Outlook:

In the near term, ERW Patra pipe demand is expected to be soft due to buyer sentiment/trade volumes continuing to be dampened by the festive season caution and monsoonal disruptions. The sentiment currently reflects a wait-and-see strategy, as stockists sit back and wait for more clarity on policy matters. However, once the festive month is over and there is stabilization from the flood regionally, demand is anticipated to gather pace again. Clarity over iron ore duties and a better weather forecast should support a gradual recovery in market activity after the festivities.