In both Raipur and Mandi Gobindgarh, ERW Patra Pipe Prices have reportedly increased on a weekly basis. In Raipur, prices increased by ₹800 a tonne (t) to a new price of ₹40,400/t exw last week. Meanwhile, Mandi Gobindgarh experienced a weekly increase of ₹700/t to a new price of ₹42,400/t exw, while both have experienced slight corrections in day-on-day prices. Overall price levels have proven to be resilient despite a lack of trading activity.

The increase in ERW Patra Pipe Prices can primarily be attributed to rising raw material costs. For example, the price of HR Strip (the base material used to manufacture ERW pipes) increased dramatically in Raipur and Mandi Gobindgarh by as much as ₹1,200/t w-o-w in Raipur and ₹700/t in Mandi Gobindgarh, respectively. The price of Billets (the raw material from which the ERW Pipe is manufactured) also experienced a slight increase between the two locations.

However, the demand for finished ERW Pipe, as well as other downstream materials, has been weak due to tight liquidity in the economy and subdued downstream consumption. Most buyers have limited their sourcing activities to only essential requirements, and the rapid increase in prices has discouraged buyers from stockpiling, especially in Mandi Gobindgarh.​​

Outlook:

ERW patra pipe prices are expected to remain firm in the near term, supported by aloft raw material prices. Market participants have anticipated a gradual improvement in demand, which is likely to provide momentum to prices. In the absence of a significant recovery in buying interest, prices are likely to remain stable rather than see any sharp correction.