This week Indian HR-Plate prices continue to weigh down over negligible buying interest among end-users in the domestic market. Buyers resist making any high volume transactions despite a significant drop in prices.
Thus on a weekly basis, domestic plate prices slide down by INR 250/MT in the Mumbai market. Current trade reference prices for HR plate (5-10mm, IS2062) are hovering around INR 34,250-34,500/MT (ex- Mumbai) and at INR 34,000-35,000/MT (Ex-Delhi). Prices mentioned above are basic, and extra GST @18% is applicable.
However, traders are expecting a slight improvement in demand post-festive season which can lift prices in the domestic market.
Market participants shared with SteelMint that, “Intensity of fall has been reduced which is the positive sign for traders based in the domestic market. Thus prices remain range-bound for the last two weeks. However, demand is yet to pick up in the domestic market which can help in lifting the steel prices.”
Few other sources also shared that approaching festive season towards the end of this month will keep plate prices largely supported.
China HR-Plate export offers drop on a weekly basis- The nation’s HR-plate export offers witness slight decline by USD 5/MT owing to thin trades in the overseas market owing to competitive offers from exporters based in India and South Korea.
Thus, Chinese origin heavy plate prices stand at USD 455-460/MT FoB China over USD 455-465 in the previous week. Also, a major steel mill based in Northern China is offering HR-plate around USD 465/Mt FoB basis, which was around USD 470/MT FoB China last week.
However, the decline in prices unlikely to generate any active trades in the export market. Thus, Chinese steelmakers turned their interest to domestic sales over lesser inquiries and squeezed profit margins in the export market.
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