While Indian plate market is abuzz with the news of safeguard duty on plates by December end due to increased imports, a section of market participants believes that domestic prices will stabilize after Dec’15.
Prices of HR plates in domestic market have narrowed down by INR 500/MT in comparison to previous week. Current offers for plates of base size 16-20 mm are being assessed in the range of INR 26,000-26,500/MT (Ex-works excluding excise of 12.5%).
This price contraction is majorly due to sluggish domestic demand and presence of cheaper plate offers especially from China. Current offers for commercial quality (S235 equivalent to A36) from China are being assessed at USD 275/MT (-USD 10-15/MT), CNF India basis.
Recently the news of safeguard duty on plates have started doing rounds in Indian market and buyers have become apprehensive of importing from offshore markets.
No fresh offers are being made by POSCO-Korea and its last offers were heard at USD 310/MT. However bids are being made at USD 290-295/MT.
A section of industry players believes that flat steel prices in international market have bottomed out as steel manufacturers in China are either closing down their units or going for production cuts. As reported, the total capacity that has been shut down this year in China has topped 50 MnT. This includes both state-owned and private steelmakers.
With prices hitting bottom in international market, it is anticipated that prices in Indian flat steel market will also stabilise in coming months.
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