The list prices of hot-rolled plates (HR-plates) were further increased by up to 3,000/t ($41) by a few manufacturers for Jun’21.
- JSPL announced an increase of INR 3,000/t in the company list prices. After the hike, the effective mill list price stands around INR 70,500-71,000/t exy-Mumbai.
- SAIL also announced a hike of around INR 3,000/t in HR-plates, with effective list prices at around INR 68,500-69,000/t exy-Mumbai.
- The prices mentioned above are exclusive of GST @18%.
Tracking the hike by mills, SteelMint’s benchmark assessment for HR-plates (IS-2062/E350) of 5-10 mm thickness also moved up by INR 2,000/t ($27) to INR 67,000-68,000/t ($919-933) exy-Mumbai. Last week, the prices stood around INR 65,000-66,000/t ($891-905) exy-Mumbai. Prices are exclusive of GST @ 18%.
Updates on a few plates-consuming sectors
1. Power and energy: Tata Power Solar received a letter of award (LoA) from NTPC for constructing a 210-MW – solar photovoltaic (PV) plant. The estimated cost of the project is INR 686 crore, with the commissioning date set for Nov’22.
2. Construction and infrastructure:
a) National Highways Authority of India (NHAI) issued a tender worth INR 729.76 crore for six-laning of 20.06 km stretch of the Chittoor-Thachur road. The stretch spans Pondavakkam to Kannigaipair in Tamil Nadu under the hybrid annuity mode (HAM) under Bharatmala Pariyojana (Package-IV).
b) MoRTH approves grant for the development of Hebri-Parkala road- The Ministry of Road Transport and Highways (MoRTH) approved a grant of INR 369 crore for four-laning and overall development of the 29.10-km Hebri-Parkala road (NH-169 A). Along with this the approved fund also includes the cost for elevating the break wall of NH-169 near Nemmar.
c) Metro rail project- Mumbai Metropolitan Region Development Authority (MMRDA) has awarded the letter of acceptance to J Kumar Infraprojects Ltd for the designing and construction of the balance work package CA04R elevated viaduct and 10 elevated stations, excluding architectural finishing and pre-engineered steel and roof structure of stations. The project cost is around INR 1,307.88 crore.
3) Auto segment hit by lockdown- Sales of both farm equipment and commercial vehicles were hit by the lockdown in May ’21 when almost all market activities were stalled by the spike in Covid cases across the country. This time, the infections also increased in rural areas which further dampened demand. Also, a few manufacturers decided to shut operations for about a fortnight over a surge in infections.
Although sales had taken a hit, the outlook continues to remain positive. Hemant Sikka, President, Farm Equipment Sector, Mahindra & Mahindra, said, “A bumper rabi harvest, record procurement, food prices holding up, gradual opening up of mandis and expectations of a normal monsoon will pave the way for growth in the upcoming season.”
China’s HR-plate export offer range narrows- The Chinese HR-plate offers are currently ranging at $920-930/t FoB China, against $900-940/t FoB basis a week ago. The leading factors impacting export offers are-
a) Possibility of production curbs easing by the Tangshan government.
b) Volatility in the futures market.
c) Both overseas and domestic buyers are in a wait-and-watch mode, anticipating a further decline in prices.
Outlook-
Ground-level demand seems to be low, but with the easing of the lockdown norms and declining Covid cases, it would be interesting to see how prices move in the next few weeks. Also, a few plate-consuming industries are optimistic about demand picking up with the gradual opening up of markets.
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