Trade-level prices of hot-rolled (HR) plates increased by around INR 1,000/tonne (t) ($14/t) in the Mumbai market at the beginning of August on the back of supply constraints in the domestic market despite weak demand.
“Traders have moved to the side-lines by deferring procurements in expectation of a correction in HR plate prices in the near-term,”stated a credible source.
However, Indian mills are of the view that they would most likely keep the prices of HR plates stable in the coming weeks.Buying activity in the end-user segment seems to be slow at the moment but there is good demand and visibility from wind tower and pipeline segments.
“Owing to monsoons, trade activity has been limited. Demand of plates in fabrication and heavy engineering segments remains sluggish owing to partial lockdowns and Covid-led disruptions,”said a western-India based trader.
For week 32, SteelMint’s assessment for benchmark HR plates (IS-2062/E250) of 5-10 mm thickness stands at around INR 66,000-67,000/t ($890-904/t) exy-Mumbai, up by almost INR 1,000/t. Prices are exclusive of GST @18%.
Domestic tractor sales in Jul’21 rise 3.3% y-o-y
As the government lifted the lockdown, domestic tractor sales increased by 3.29% y-o-y to 66,217 units last month against 63,137 units in Jul’20. The three-week monsoon slowdown from mid-June to mid-July temporarily affected sowing of Kharif crops, leading to slowdown in sales in the last month.
VST Tillers and Tractors’total sales jumped 13.03% to 4,397 units in Jul’21 from 3,890 units in Jul’20. Sequentially, the company’s total sales rose 11.68% in Jul’21 from 3,937 units sold in Jun’21.
Escorts Ltd recorded domestic tractor sales of 6,055 units in Jul’21, up against 4,695 units in Jul’20, registering a growth of 22.25% y-o-y.
Mahindra and Mahindra recorded a 5.34% growth in Jul’21 by selling 25,769 units against 24,463 units in Jul’20. This clearly shows an apparent 1,306 units growth. Hemant Sikka, President, Farm Equipment Sector, M&M, said:“Demand remained buoyant in July as crop sowing operations gained traction with monsoon picking up. Easing of Covid curbs and robust farm incomes on account of record Rabi crop procurement bode well for the rural economy. We continue to stay bullish on tractor demand in the coming months owing to revival of monsoon, hike in the MSP of key Kharif crops and upcoming festival season. In the exports market, we have sold 1,460 tractors with a growth of 55%.”
China’s steel plate export prices rise further
The Chinese steel plate export offers have widened this week by about $10/t with concerns over a possible export tax on plate products weighing on trading activity.
The current week’s assessed export offers stand in the range of $910-950/t FoB China for September/October-shipments as against the previous week’s $910-940/t FoB.
Way ahead
Domestic traders are awaiting lower price levels from mills before making further purchases of HR plates. But mills are likely to keep prices stable and may continue to maintain the current price levels for a few weeks on the back of the current market scenario.
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