Over the past week, the prices of ERW patra pipes have continued to decline in both Raipur and Mandi Gobindgarh, driven by weak market sentiment and insufficient demand for finished goods. There was very little activity in both locations, with most buyers purchasing only what they needed for immediate use rather than making long-term purchases. On a week-over-week and day-to-day basis, the prices fell, demonstrating the inability of manufacturers to raise prices because of low demand for their products. Even though the raw materials had been in demand and prices on raw materials were somewhat stronger, the overall market was still being negatively impacted by weak consumption and a lack of buyer confidence in this segment.

Outlook:

It has been anticipated that the near-term prices for ERW pipe should remain volatile, and most likely a downward trend due to weak end-user demand being the significant driver over market fundamentals. With raw material prices (i.e., HR Strip, Billet) declining recently, price stability will not be supported by lower production costs - for now, it will only serve to put downward pressure on prices. Unless there is a considerable increase in finished goods demand or restocking activity, prices in both Raipur and Mandi Gobindgarh will likely remain under pressure through December, as the market remains cautious and continues to buy on a need basis.