This week, domestic HR-plate prices have shown an uptrend of around INR 500/tonne (t) in the retail market segment. For week-33, the SteelMint benchmark assessment for HR-plates (IS 2062/E250, 5-10 mm) stands at around INR 66,500-67,250/t exy-Mumbai. The prices mentioned above are exclusive of GST @18%.
Factors impacting market sentiments
1. Sluggish trade- The continual increase in plate prices in the past couple of weeks has dampened the buying interest as sellers started quoting higher this week too. However there was a slight pick-up in demand last week, which subsided later as traders and buyers started postponing their procurements.
2. Limited demand from heavy engineering, fabrication industries- The heavy engineering and fabrication industries were the worst hit by the pandemic. These industries have been reeling under pressure from the sporadic lockdowns and very low buying interest among end-users, especially in the northern provinces.
“Since the emergence of Covid-19, trade activity remains sluggish. However, there were a few instances when demand picked up. Developments have been limited in fabrication and heavy engineering segments since the announcement of the first lockdown,” said a northern-India based trader.
China’s steel plate export prices move up
The current week’s assessed export offers stand in the range of $935-950/t FoB China for Oct’21 shipments, moving up by $25/t as against the previous week’s offer at $910-950/t FoB.
However, the Chinese plate export market was quiet owing to continued uncertainty over a possible export tax announcement.
Outlook
Domestic HR-plate prices may remain under pressure due to a slowdown of trade in the domestic market. Higher inventories among traders and dull sales are leading to bearish sentiments which, in turn, may result in a drop in plate prices in the near term.
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