Indian Plate Prices stable on Low Supply

Plate prices in India remain stable owing to tight supply and week trading this week. Steel Plates continue to trade at previous month’s level. Minor price correction of INR 300-500/MT was reported for HR Plates of thickness 5-10 mm in North India.

Traders blame poor demand and delayed payments as the major speed-breakers, which still continue to affect trading volumes.

A trader based in Faridabad, who supplies PM Plates to manufacturing sector commented,“Prices are stable as of now since supply has been under control. Stockyards are currently maintaining lower inventory as financial year end approaches. It is imperative for manufacturers to clear off the stock by the end of March. This optimal supply has led to stability in prices to certain extent. However, HR Plates prices have corrected by INR 300-500/MT.”

PM Plates of thickness 12-20 mm are trading at INR 40,500-41,500/MT and 22-40 mm thickness at INR 42,500-43,000/MT. It is learnt from market sources that Steel manufacturers and MoU holders have already achieved their annual target for this financial year.

Similarly, prices of HR Plates in West India have corrected by up to INR 500/MT. Currently, HR Plates of thickness 5 mm are trading at around INR 39,500-40,000/MT based on payment conditions. Whereas, PM Plates of thickness 12-20 mm are offered at around INR 41,000/MT levels.

Ship breaking activities in West India have slowed down recently and some market participants expect the supply of Plates to fall in the next few weeks.

As per an international trader, import offers of prime grade Plates are currently at USD 480-490/MT, CFR India.

Mining Equipment Orders to rise 

As per recent media reports, Power Ministry has announced projects worth 1 lakh crore, which will increase demand for the mining equipment manufacturers, thereby increasing demand for Plates.

But, industry experts believe that this project is still on papers and will take another 5-6 months to be executed, which may then increase demand for Plates.

A senior official of a Plate manufacturer while talking to SteelMint said, “We welcome this initiative from the power ministry. However, it’s too premature to comment on improving demand for Plates on account of such projects. The procurement of Plates may not be necessarily from domestic manufacturers as project contractors may opt for imported plates if the macro dynamics are favorable. Presently, the exchange rate is acting as a temporary shield for cheaper imported Plates. However, it is difficult to say whether domestic manufacturers will able to get this benefit in future.”

Shipment data of Dec’14 reveals that Steel Plates used for manufacturing of Wind Turbine Generators (WTG) in India were mainly imported from China, South Korea and France.