POSCO, Indonesia Further Cuts MS Plate Offers to India

POSCO, Indonesia has further reduced its offers to Indian market by USD 5-10/MT amid subdued demand and competitive offers from Chinese suppliers.

PT. Krakatau Posco, a JV (Joint Venture) company between PT. Krakatau Steel Tbk.and POSCO Korea, has recently started its 1.5 MnT plate mill in Indonesia. The company’s MS plate (A36 or S250) offers for September shipments are assessed at USD 375/MT, CIF India for base size (16-20 mm); have down USD 5-10/MT. In 1st week of July, offers were in the range of USD 380-390/MT, CIF India.

However as per trade sources, there is no major buying interest in the Indian market at this price level. The reason behind this is cheaper Chinese offers; assessed in the range of USD 330-335/MT, CIF India. High tensile (S355) plate offers from China are also expected to be at USD 370-380/MT, CIF India for September shipments, which were USD380-400/MT last week.

There is no import duty on products from Indonesia due to recent preferential trade agreement signed by Indian government with ASEAN countries. Whereas, Chinese products are imposed with 10% import duty. Besides, Indian mills are optimistic that that the government may impose safeguard duty on imported flat steel products.

Indian Plate Offers under Pressure

As per sources, SAIL’s domestic offers for commercial quality (IS2062 equivalent to A36/S250) grade MS plate are assessed at INR 34,000-34,500/MT, ex-Chennai (12.5% Excise included). The prices are INR 500/MT lesser as compared to previous week. Indian plate offers are in the range of INR 28,000-28,500/MT, ex-factory (excluding 12.5% Excise).

It is anticipated that low-priced offers by Chinese manufacturers and POSCO, Indonesia are likely to further pressurize MS plate prices in domestic market.

India’s Plate Imports in Q1 FY16

Quantity in 000’MT
Source: JPC