The average monthly trade reference price of hot-rolled (HR) plate has declined by 8% in Dec’21 to INR 65,900/t ($886/t) exy-Mumbai from INR 71,000/t ($955/t) exy-Mumbai in Nov.
Subdued demand in the domestic market along with declining global export offers continue to weigh on prices.
For week 1 (27 Dec’21- 01 Jan’22), SteelMint’s assessment for HR-plates (E250, 5-10mm) dropped by INR 900/tonne (t) ($12/t) to INR 63,500-64,000/t ($854-861/t) exy-Mumbai. Prices are basic, excluding GST at 18%.
Global HR plate prices go downhill: Plate prices are on a downtrend which is weighing on both prices and market sentiments. For instance, export offers of Chinese heavy plates (SS400, 12-40mm) dropped significantly by $135-140/t to current week’s levels of $790-800/t FOB in contrast to $925-940/t FOB in mid-Oct’21.
Also, at the beginning of the week, a private Indian mill was heard having booked 10,000/t HR plates (S355, 12-40mm) for export to Egypt at $940/t on CFR basis for end-Jan’22 shipment. Current offers for this grade are at around $930/t CFR Egypt.
Slow domestic buying weighs on trade market prices: On the end-users’ front, demand remained need-based for a prolonged period this year. The slow momentum of growth in sales of farm equipment along with commercial vehicles weighed on demand for plates from the ancillary industries as well.
Also, other non-regularised end-user industries continue adhering to need-based procurement in anticipation of a further decline in prices.
However, “the project orders are good for HR-plates from the infrastructure and construction segments, with good order books for Jan’22. Among the flat steel products, plates are performing better than others,” a mill source explained.
Near-term outlook
Prices in the domestic trade market are likely to remain under pressure on slow procurement. Further, there are indications that plate producers might reduce list prices for Jan’22 by around INR 1,000-2,000/t in view of falling global as well as domestic plate prices.
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