Indian mills lift HR-plate offers by INR 1,000-1,250/t ($14-17) in Nov ’20

Major HR plate manufacturers in India have raised list prices by INR 1,000-1,250/t in Nov’20 on bullish market sentiments and improved buying.

After the hike effective prices of major mills are as follows:

• Govt owned SAIL raised HR plate prices by INR 1,250/t and list prices are at INR 44,750-45,000/t (exy-Mumbai).
• AM/NS India raised plate prices by INR 1,000/t. Revised offers stand at around INR 44,250-44,500/t (exy-Mumbai).
• JSPL raised plate prices by INR 500/t at INR 44,500/t (exy-Mumbai).
• Prices do not include GST @ 18%.

The effective hike was reflected in the trader’s market as well. SteelMint’s benchmark assessment for HR-plates (base grade IS 2062, 5-10mm) stands at INR 44,500-45,000/t exy-Mumbai, rising sharply INR 1,500/t against the previous week.

“Sentiments in the plate market are showing positive signs as customers have increased inquiries,” shared by major plate manufacturer.

Mills raised plate prices further due to:

• Better demand from downstream industries- The downstream industries like Pre Engineered Buildings (PEB), infrastructure, and capital goods are posting better demand on improved market activities. The pent-up demand from the last couple of months is coming forth with improved sales ahead of the festive season in these industries. Also, demand in the infrastructure sector is expected to pick up which remains slow since the last few months.
• Indian oil and gas sector likely to receive fresh investments- As per market reports India’s oil and natural gas sector is likely to receive a fresh investment of over $300 billion by 2030 for developing natural supply and distribution infrastructure to meet rising demand. The government aims to more than double the share of natural gas in its energy base to 15% by 2030. This may lead to an increase in demand for plates in the near term.

Outlook- The market participants are bullish about the revival of the oil-and-gas and shipbuilding industries post the festive holidays. Along with this, they anticipate further improvement in demand from the infrastructure industries. This is likely to keep the prices supported in the upcoming weeks.