- Slower mill-to-trader movement of HR plates limits spot availability
- Major mills raise offers for new bookings amid strong demand outlook
India’s hot-rolled (HR) plate prices increased during the week ended 26 August, supported by moderate-to-good demand, improved buying activity and shortages of select grades and thicknesses. Price indications strengthened after major domestic mills raised offers for new order bookings, while expectations of improved demand in the coming weeks encouraged sellers to maintain firmer offers. The higher price levels were gradually reflected in spot transactions, supporting the overall market.
BigMint’s assessment for HR plate (IS 2062, Gr E250 Br, 20-40 mm) increased by INR 1,000/t ($10/t) w-o-w to INR 62,500/t ($655/t) from INR 61,500/t ($645/t) in Mumbai. In Delhi, prices also rose by INR 1,100/t ($11/t) to INR 60,900/t ($638/t) from INR 59,800/t ($627/t), tracking the upward movement seen in the domestic hot-rolled coil (HRC) market.
Market update
India’s HR plate market witnessed a sharp rise in spot prices, supported by tighter availability of commonly traded grades and thicknesses. Market participants reported shortages in select specifications, particularly those seeing relatively stronger buying interest, while slower material movement from mills to traders further limited spot availability.
Although mill dispatches continued, supply-chain constraints resulted in material reaching traders at a slower pace, creating a temporary gap between mill dispatches and spot-market availability. The relatively tighter availability has strengthened sellers’ pricing positions, with limited room for aggressive negotiations.
A market participant quoted, “There has been healthy demand, if not full-fledged, and we expect demand for plates to increase significantly in the coming month.” Buying activity has also improved, while credit availability remains selective as market participants seek to retain cash surplus and maintain liquidity. The combination of controlled supply and improving trade activity has lent a slightly bullish undertone to the market.
Overall, tighter availability, slower replenishment, firm HRC prices and improving liquidity conditions are providing support to HR plate prices. With downstream demand expected to improve in the coming month, prices are likely to see further gains, although the pace of increase will depend on the strength of actual order flows.
HR plate prices firm as HRC strengthens
The continued firmness in the domestic HRC market is expected to provide further support to HR plate prices, with the HRC benchmark increasing by INR 1,100/t w-o-w to INR 59,400/t ex-Mumbai as of 25 August. The corresponding INR 1,100/t increase in CRC prices also indicates firmer flat-steel pricing across downstream segments, strengthening the overall price environment for HR plates.
Firm HRC and CRC prices, along with tighter availability of select HR plate grades and thicknesses, are expected to support plate offers and provide room for further price gains, subject to an improvement in downstream buying.
Imports and exports
HR plate imports stood at 24,391 t as of 21 August, with China accounting for the majority at 19,270 t, followed by South Korea at 4,707 t and Japan at 414 t.
HR plate exports stood at 37,015 t during the same period, remaining higher than imports and indicating a relatively stronger export flow despite limited visibility on destination-wise volumes.
Outlook
India’s HR plate prices are expected to move higher in the near term, supported by firm HRC prices, tighter availability of select grades and continued mill pricing discipline. Buying activity is expected to improve gradually as downstream demand picks up, with the upcoming period likely to support replenishment across fabrication, automotive and engineering segments. The recent rise in HRC and CRC prices is also expected to strengthen the price floor for HR plates. Overall, the market is expected to maintain a bullish undertone, with improving buying interest and tighter spot availability likely to support further price gains.
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