Chinese plate offers have surged amidst production curtailment. While domestic plate market has witnessed mixed response.
MS plate export offers from China have increased slightly in the 1st week of August. Commercial (S250) quality plate is currently being offered at USD 335/MT, CIF India. Prices in Chinese market have firmed up recently on account of production cut by steelmakers amid tougher environmental law. As per trade sources, even in last week of July, few bookings have been made where commercial (S250) quality plate was offered at USD 330/MT, CIF India.
Chinese export offers for commercial grade plate are assessed at USD 315/MT, FoB China main port, which was around USD 310/MT last week.
Offers from POSCO, Indonesia are going steady since last few weeks. Current offers for commercial grade A36 and base size of (16-20 mm) are assessed at USD 370-375/MT, CIF India. No bookings have been reported for August shipments and there are no fresh offers for September shipments as well. There is no import duty on products from Indonesia due to recent preferential trade agreement signed by Indian government with ASEAN countries.
Indian domestic market witnesses mixed response
Indian domestic plate market is observing mixed response. Some manufacturers have lowered their prices by INR 500-700/MT, while, some are holding offers at current levels in anticipation of safeguard duty on imports, which is likely to be imposed by the government in near future.
Current offers for commercial grade plate are around INR 28,000/MT, ex-factory (excluding 12.5% Excise). Offers in Delhi are around INR 33,500-34,000/MT (including 12.5% Excise). Some secondary plate mill operators in Mumbai, who use imported slabs are offering 16-65 mm plate at INR 29,000/MT (including 12.5% Excise).
Export not viable from India
MS plate export is not viable from India owing to cheaper offers from Chinese suppliers. Last deal was concluded by SAIL to Taiwan for July shipments at USD 360/MT, FoB East Coast India. As per market sources, SAIL is unwilling to lower down its prices below USD 350/MT, FoB India. However, buyers are seeking offers in the range of USD 320-330/MT levels.
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