Cheaper Offers for Imported Plates may force Indian Manufacturers to cut Prices

Indian plate manufacturers may be forced to review their prices in the month of April owing to cheaper imports from Korea and ASEAN countries. Indian prices for 10-20 mm plates are assessed at INR 37,500-38,000/MT (Ex- Delhi, Dealers price, including excise of 12.5%).

An Indian trader reported that a cargo of around 25,000 MT A36 grade Plates from POSCO-Indonesia has been booked for May shipments at around USD 428-430/MT CIF India West Coast. Indian government has waived off import duty on steel products from ASEAN countries w.e.f. 1 Jan’15 under the Preferential Trade Agreement.

He also mentioned to have offers from China at USD 400-405/MT CIF India for commercial quality. Imports from China attracts an import duty of 7.5%.

Landed cost of this cargo would be around INR 32,500/MT (Including CVD of 12% ;SAD 4% extra), which is cheaper by at least INR 3,000-4,000/MT than the domestic market.

” Demand at the moment is weak, we expect it to improve in first quarter of the next financial year. One of the plate mill based in Mumbai is offering prime quality Plate at 10-20 mm at INR 34,000/MT, prices include excise of 12.5%, VAT extra.” said a trader based in Mumbai.