POSCO-Indonesia has lowered down its plates offers to India by USD 10-15/MT against last week thus giving stiff competition to Chinese offers.
As per market sources, POSCO’s export offers for plates of commercial grade (A36) are currently assessed at USD 280-285/MT while offers from China remained stable at USD 285-290/MT this week.
POSCO-Indonesia’s surplus stock of plates owing to drastic fall in demand from global ship building and oil industry has led to fall in its plates prices”, quoted an importer based in Mumbai.
However, SteelMint has heard that currently Indian buyers are not much interested in booking plate imports from any country. This is majorly due to subdued demand and strong anticipation of safeguard duty likely to be imposed on plate imports.
On Oct 28’15, a petition was filed by SAIL, Essar Steel, JSW Steel and Jindal Steel & Power Ltd for imposition of safeguard duty on imports of plates. DG Safeguards accepted the petition and investigation on the same is being carried out. The public hearing on the case is scheduled on 5 Feb’16.
Also another key reason due to which there is reluctance in steel import bookings by Indian importers is BIS (Bureau of Indian Standards) license which is being made mandatory from 18 Mar’16.
Increased threat from Russia
Along with shipbuilding industry, plates are also used for oil exploration purpose by major oil producing countries, Russia and Middle East.
With the falling crude oil demand, the oil and gas sector of Russia is adversely affected. Prices of brent crude oil have fallen drastically by about 36% in last one year resulting in devaluation of Russian currency, Ruble by 20%.
With weakening Ruble, there is increased risk of cheaper and competitive plate export offers from Russia exporters in the coming future.
Indian plate offers stable
Domestic plate offers in India have been stable this week against last week. Current offers for base size (16-20 mm) plates are being heard at INR 24,500-25,000/MT (ex-Works basis). Price exclude excise of 12.5%.
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