India’s domestic HR plate prices remained largely stable this week. However, trade participants reported fewer trades and subdued demand in the local market.
“Mills had raised plate offers in Sept’20 however the market was unable to absorb the hike completely. There was a slight decline in trade volumes this week,” said major plate steel producer.
Current trade reference price for HR plates (IS2062 2.5-8mm) stands at INR 39,500-40,500/t (exy-Mumbai), and INR 41,500-42,000/t (exy-Delhi). Prices mentioned do not include GST @ 18%.
If sources are to be believed, Indian mills may hike plate prices further in Oct’20 considering the increase in raw material cost. However, it would be interesting to see if the price hike finds acceptance in the trade segment as well.
Indicators that may resist further price hike in plates-
1. Fall in crude oil futures- Brent crude oil futures fell to $41.4 today which was around $44 in mid-Sep. The market remains sceptical on demand outlook amid a resurgence in COVID-19 cases.
2. The second wave of Covid-19- Coronavirus cases are reaching record high as Europe is experiencing the second wave which may have much adverse impact ahead this winter. There is much talk of a second national lockdown in the UK, which on Tuesday announced further restrictive measures.
3. Softness in global prices- Chinese plate export offers fell by around $5-10/t w-o-w basis and current offers stand at $510-515/t FoB basis. Prices fell on the weakening futures market.
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