Indian Plate manufacturers preferred to roll over prices last month on temporary slowdown in imports. However, experts view that surge in import offers may compel manufacturers to alter their pricing strategies in the coming weeks.
Trade sources in Mumbai informed SteelMint that Carbon Steel Plates of A36 grade (10 mm +) is offered at USD 428/MT CIF Mumbai for April shipments. The trader also informed,“The consignor is a Korean manufacturer shipping the plates from its Indonesian Plant. ”
Some experts believe that this is an emerging concern for Indian plate manufacturers, as Indian government recently waived off import duty on import of steel from ASEAN countries (Indonesia, Thailand, Malaysia, Singapore) under Preferential Trade Agreement ( vide customs notification no 38/2014)
Preferential Trade Agreement : opportunity for imports
India’s Preferential Trade Agreement with the ASEAN region allows a duty waiver on imported finished Steel products and this gives importers an opportunity to import more.
Commercial grade Plates of Chinese origin is assessed at USD 400-405/MT CIF India. Whereas, High tensile plate from Korea is offered at USD 465/MT CIF India.
Domestic Plates of thickness 10mm and above traded in the range of INR 38,000-40,000/MT this week. Traders say that owing to low demand, prices are likely to trade within this range.
“ There are no major shipments this week for which the difference between domestic prices & imported prices have reduced. Although there is a preference for imported products, and we expect minor correction in domestic plate prices once shipments arrive next week” said a trader based in Mumbai.
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