Indian mills raise HR-plate prices for Oct ’20

The Indian steel manufacturers have further raised their list prices of HR plates for Oct ’20 deliveries, SteelMint learned from the reliable trade channels.

• Government-owned – SAIL has increased prices by around INR 1,000-2,000/t and offers are at around INR 42,000-42,250/t (exy-Mumbai).
• AM/NS India steeply raised list prices by INR 4,000/t and current offers are around INR 43,500-44,000/t (exy-Mumbai).
• JSPL raised plate prices by INR 2,000/t and current offers are around INR 43,500-44,000/t (exy-Mumbai).
• Welspun India also raised list prices by around INR 2,500-3,000/t. Current offers are around INR 44,500/t (exy-Gujarat).

Following the hike by mills, SteelMint’s benchmark assessment for HR-plates ( IS 2062 5-10mm) also went up by around INR 1,050/t on the week and stands at INR 42,250-42,300/t exy-Mumbai. The prices have moved up to the levels last seen in early-Apr ’19.

Factors supporting price hike-

• Improved inquiries from PEB and construction sectors- Market sources shared with SteelMint that inquiries have increased from the PEB (Pre-engineered building) segment. In the industrial sector, PEBs are used for constructing large structures, such as power plant structures, warehouses, workshops, factories, cold storages, assembly plants, and steel mills. The demand for PEBs is growing in the industrial sector, owing to the ease of installation and customization capabilities.
  

  “Customers are trying to prepone their purchases for their future requirements anticipating a further increase in plate prices in the near term,” shared a major steel manufacturer.

Further highways and construction sector activities are picking up and we are getting some inquiries from these segment too.

• Higher raw material cost- India’s state-owned iron ore miner- National Mineral Development Corporation (NMDC) has increased prices by 6-7% for Oct ’20, sources reported to SteelMint. The prices for Baila lump and fines have been increased by INR 200/t and that of DR CLO by INR 240/t. Domestic iron ore prices in India continue to remain on the higher side on limited availability in Odisha’s merchant market.
• Oil and gas industry is expected to pick up post-pandemic- As per market reports, the country’s largest gas processing and distribution company indicated that local demand for gas had recovered to pre-pandemic levels.

All the above factors have kept market sentiments supported in India’s HR plate segment.