This week, domestic HR-plate prices continue to remain firm over sustained demand in the domestic market. However, trade sources reported lower sales and dull sentiments in the domestic market.
Market participants shared, “the domestic market exhibited better demand in the first week of Dec’19, post announcement of the price hike by major steel companies. However, in the second-week sale volumes reported low.”
Thus, trade reference prices for HR-plates (IS 2062, 5-10 mm) stand at INR 35,000-36,000/MT (ex-Mumbai), and INR 35,200-36,000 (ex-Delhi). Prices mentioned above are basic and extra GST @18% will be applicable.
Few trade sources remain in doubt regarding the acceptance of the current hike in the domestic market, as demand continues to remain sluggish. Buyers are holding back their purchases over limited demand.
However, few remain optimistic about further uptrend in steel prices in Jan’19. Thus, uncertainty continues to prevail in the domestic market.
Chinese HR-plate export offers soften over thin trades- The nation’s heavy plate export offer moves down marginally owing thin trades and weakening demand in the domestic market.
The current export offers stand at USD 457-465/MT FoB China, which was USD 460-465/MT FoB basis a week ago.
Few traders in China are trying to book material at around USD 460/Mt FoB basis.
However, the prices are expected to increase by around USD 5-10/MT over low supplies, since the transportation faces hindrances like strict rules and bad weather conditions.
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