India’s domestic plate prices have remained range-bound this week in the west, while dropped by INR 750/t in the northern region. The current price stands at INR 35,500-36,000/t (ex-Mumbai), and INR 35,000-36,000/t (ex-Delhi). The prices mentioned above are basic, and GST extra @ 18% is applicable.
A few traders in the west shared, “the trades slowed down during the week owing to the spike in infection cases in various regions. The market participants have again stood at the side-lines observing the trend after decent trades in the past week.”
Factors affecting domestic HR plate market-
1. Limited trades- Increased preference for cash or immediate payment terms by the traders have weighed on the frequency of trades. This has made it difficult for small and medium traders to conclude deals as they mostly prefer credit period. At present, the trades are at 30-35% levels.
2. Labour shortage- Not only the mainstream steel sector activities but the allied activities like loading-unloading and transportation have been impacted by the unavailability of a significant task force.
3. Seasonal slowdown- With the commencement of monsoon season, the buying activities might remain affected, which, in turn, shall weigh on plate prices in the near term.
Indian mill concluded a 10,000t HR plate export deal- A 10,000 plate export deal from India for Vietnam was concluded last week. According to trade sources, the deal was concluded at around $438/t CFR.
China heavy-plate export offers up marginally-
Nation’s mills have moderately increased their heavy plate offers by $ 5/t supported by the decent demand in the domestic market. Meanwhile, there has been some improvement seen in demand from a few importing nations.
Thus the current offer stands at $475-480/t FoB China basis as compared with $470-480/t a week ago.
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