Indian Plate Prices likely to decline over Cheaper Import from Indonesia

Indian Plate manufacturers, who have been struggling with cheaper import and low domestic demand since few months, are now under pressure.

Indian Plate makers might be forced to review their prices in the month of May owing to cheaper import from Korea & Indonesia. Current offers for MS plates (E250 grade, equivalent to A36) from POSCO-Indonesia have fallen to around USD 402-405/MT, CIF India for May/June shipments.

It is to be noted that the Indian government has waived off duty on import of Steel products from ASEAN (including Indonesia) countries w.e.f 1 Jan’15 under preferential trade agreement.

Earlier, an Indian trader reported to have booked about 25,000 MT A36 grade Plate from POSCO-Indonesia at around USD 428/MT, CIF India, for which deliveries will be made in May.

“Offers from POSCO-Indonesia are assessed at around USD 402-405/MT, CIF India. Some deals have been heard to be settled at USD 405/MT levels last week for May/June shipments. We will not be surprised if Plate prices come down by INR 500-1,000/MT in May,” said a Plate trader based in Mumbai.

Domestic Prices higher by INR 3,000/MT

Indian domestic prices are higher by at least INR 3,000/MT (USD 47/MT). Prices for 10-20 mm Plates are assessed at INR 30,500-31,500/MT (ex-works basis, excluding Excise). Whereas, retail prices are in the range of INR 37,000-37,500/MT (including Excise of 12.5% and freight).

MS Plate Import Calculation

* Rupee considered at 63 per USD; Imports from Indonesia
No import duty from ASEAN countries
Source: SteelMint Research