India: HR plate prices remain steady amid weak demand

• Weak fabrication demand limits domestic plate buying
• Stable HRC prices keep plate market supported

India’s hot-rolled (HR) plate market remained largely stable in the week ended 30 July, as subdued demand from construction, fabrication and heavy engineering sectors continued to limit fresh buying despite steady consumption from infrastructure and energy projects. BigMint’s assessment for HR plate (IS 2062, Gr E250 Br, 20-40 mm) remained unchanged w-o-w at INR 60,300/t in Mumbai, while prices in Delhi eased marginally by INR 300/t to INR 58,700/t, reflecting the softer trend in the domestic hot-rolled coil (HRC) market.

Demand remains subdued

Market activity remained cautious as intermittent monsoon showers slowed construction and fabrication work, prompting buyers to procure only against immediate requirements. Private sector demand also remained muted with limited fresh enquiries from heavy engineering and fabrication units. However, plate demand from pipeline, infrastructure and energy projects continued to remain healthy, while shipbuilding activity provided additional support, keeping overall market sentiment mixed rather than uniformly weak.

HRC price movements

HR plate prices largely tracked the domestic HRC market during the week. BigMint’s benchmark assessment for HRC (IS 2062, Grade E250, 2.5-8 mm/CTL) eased marginally by INR 100/t w-o-w to INR 57,700/t in Mumbai and INR 55,500/t in Delhi. The limited movement in HRC prices kept replacement costs largely stable, enabling plate producers to maintain offers despite sluggish downstream demand.

Import and export volume

Bulk HR plate imports totalled 24,881 t as of 29 July, with South Korea, China and the UAE remaining the major suppliers. Meanwhile, export activity continued to lend support to the domestic market. Around 16,702 t had already been exported by 29 July, while another 12,121 t is scheduled for shipment this week, indicating sustained overseas demand for Indian HR plate despite weak domestic consumption.

Outlook

HR plate prices are expected to remain broadly stable over the coming weeks. While monsoon-related weakness in construction and fabrication activity may continue to weigh on domestic demand, healthy infrastructure spending, steady export bookings and relatively stable HRC prices are likely to limit any significant downside in the market.