The domestic HR-plate prices stood unchanged after a week of dull trades and weak demand. Bearish market sentiments, and limited buying inquiries have kept HR-plate prices under pressure.
SteelMint’s benchmark assessment for the HR-plate (IS 2062/E350) for 5-10mm continues to hover at INR 52,500-53,500/t exy-Mumbai. Price is exclusive of GST @ 18%.
“Limited enquiries are being received at present as the major plate consumers remain observant because of the uncertainty in price direction. Also, they are anticipating further correction in upcoming weeks,” a major plate producer shared with SteelMint.
While a trader from North India shared, “The inventory levels are high in the trade segment at present, as traders had booked good quantities earlier and now, they are liquidating inventories in anticipation of a further downtrend, which has weighed on the market prices.”
SteelMint observed following factors behind the decline in prices-
1. CCI’s investigation on cartelization weighs on demand- Concern raised by various downstream steel consuming industries on prices surging over 45% since June ’20 and possible cartelization in the steel industry has attracted investigation from India’s anti-trust regulator, Competition Commission of India (CCI).
“This is further going to weigh on the buying interest. Major OEMs had already cut-down on their procurement for non-critical projects while activities in the trade segment have continued to remain sluggish for a month now on higher prices,” shared a credible market source.
2. Global trades subside on holidays- Trading activity in the global market has come to a temporary halt with the major steel producer- China going mute on the Lunar New Year holidays until 17 Feb ‘21. The last heard offers for Chinese heavy-plate (SS400, 5-10mm) were at $630-635/t FoB China.
3. Cautious approach in trade segment- Traders remain cautious over the fall in the domestic prices for the past few weeks and are refraining from making any procurement at present.
What may happen?
Dull demand, ongoing government investigation and lack of clarity over a temporarily muted global market might keep the prices under pressure in the near term.
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