Indian Plate Manufacturers Hold Domestic Offers

Indian MS plate prices remained unchanged this week amid currency depreciation and anticipation of safeguard duty. Manufacturers may increase prices if safeguard duty is imposed.

Unchanged offers

After being affected by influx of cheap imports from China, Japan, Russia and Indonesia since last four months, India’s flat steel market has entered into a wait and watch mode with INR depreciation and news of safeguard duty doing rounds in the circuit.

Indian plate manufacturers are keeping their offers unchanged wrt last week. Current offers for 5-10 mm MS plate (grade IS2062) is assessed at INR 28,000/MT (ex-factory basis), INR 29,500-30,500/MT delivered at Delhi and INR 29,500/MT delivered at Chennai (All prices excluding excise of 12.50%).

A brake in imports likely

China’s recent move to devalue its currency has led to strengthening of USD With USD gaining strength, many currencies including INR depreciated. Although , imports have become costlier due to rupee depreciation, it has helped Indian steel industry which is reeling under immense pressure of cheap imports. Domestic players have become reluctant to book any imports at current INR rate of 66.2/USD.

Excepted hike in domestic prices

SAIL, one of the largest steel players of India, recently mentioned that Indian government is likely to impose 10% safeguard duty on hot rolled products. With this, imports will get more costlier. Thus it is anticipated that manufacturers may raise domestic offers marginally by INR 500/MT in September.

Indian Exports not viable

MS plate exports are currently not viable from India. Prices for commercial grade (12-20 mm) plates are being assessed at USD 345/MT, FOB India basis whereas Chinese plates are being offered at a much cheaper rate of USD 305-310/MT, FOB China basis.

5-10 mm MS Plate (Grade IS2062) Prices as on 27 Aug’15

Source: SteelMint Research

Source: SteelMint Research