Domestic plate traders in India are clearing inventories at losses due to increased selling pressure amid cheaper imports from Korea and China.
The falling trend in domestic HR plates continued this week as plate prices have registered a fall of INR 500/MT over last week’s price assessment. This price correction is majorly due to weak demand in absence of no new measures by Indian government to revive demand.
Current offers for plate of base size 16-20 mm are assessed in the range of INR 25,500-26,000/MT (ex-works; excluding 12.5% excise).
“We are bearing losses in the range of INR 500-800/MT this month in order to clear our domestic inventories as cheaper imports are arriving in bulk quantity”, quoted a trade based in Delhi.
“There are chances that Indian mills may announce rebates of INR 500-800/MT on plates in December”, quoted a market participant based in Faridabad.
Current offers for commercial quality (S235 equivalent to A36) from China are assessed at USD 270/MT, CNF India; unchanged since SteelMint’s last week assessment.
No fresh offers are being made by POSCO-Indonesia and its last offers were heard at USD 310/MT, CNF India. However, stock lots are being offered at USD 290-295/MT, CNF India.
After HRC, Indian plate market is also abuzz with the news of safeguard duty on plates by December end. As per JPC data, India’s plate imports increased by about 35% during Jan-Sept’15 against Jan-Sept’14.
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