Hot-rolled (HR) plate trade market prices increased by around INR 1,000/t in the Mumbai market towards the end of Jul ’21 on the back of supply constraints in the domestic market.
“The prices will either go up or remain flat. Currently, there is restricted material supply in the domestic market which may most likely increase HR plate prices in the near-term,”stated a credible source.
However, market sources indicated that the demand from the end-user industry continues to remain sluggish.
“Buying intent has been further impacted by heavy rainfall this season. Demand of plates in fabrication and heavy engineering segments is quite less owing to partial lockdowns and Covid-led disruptions,”said a western-India based trader.
Mills keep list prices stable
For week 31, SteelMint’s benchmark assessment for HR plates (IS-2062/E250) of 5-10 mm thickness stands at around INR 65,000-66,000/t ($875-889) exy-Mumbai, up by almost INR 1,000/t. Prices are exclusive of GST @18%.
However, major steel mills have kept list prices stable and continue to maintain their price levels.
“Buying activity in the end-user segment is slow, but a few mills are holding good volumes in their export books which are partially off-setting the current lull. Also, the government’s push for expediting work in the green infrastructure segment across the nation is a welcome move for contract-based suppliers,“said a credible market source.
China’s heavy plate export price rise further
The Chinese heavy-plate export offers have moved up further this week by about $10/t on the back of the possible export tax on plate products.
The current week’s assessed export offers stand in the range of $910-940/t FoB China as against the previous week’s $910-930/t FoB.
Near-term outlook
Indian mills may roll over domestic list prices for Aug ’21 deliveries and trade-level prices may stay strong in the near term on the back of export bookings done by mills.
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