Domestic HR-plate prices remained stable this week with markets returning to normalcy after a dull period and an extension of the lockdowns in a few states. However, the mills had announced an increase of around INR 3,000/tonne (t) in their HR-plate list prices for Jun ’21.
As on week 24, SteelMint’s benchmark assessment for HR-plates (IS-2062/E350) of 5-10 mm thickness continues to hover around INR 67,000-68,000/t ($916-930) exy-Mumbai. Prices are exclusive of GST @ 18%.
“The retail market has stuck to the prices because of the increase in mill prices while demand remains moderated from the downstream industries, as a few states continue to remain in lockdown,” said a market source from the north of India.
A trader from western India said, “Anticipation of a gradual return to normal market activities, with easing of lockdowns in most of the states has kept market prices range-bound for the week, providing time for the price hike to seep in to the retail market.”
Updates on a few plates-consuming sectors:
1. Railways
BMRCL, Central govt to start work on project in Oct ’21: Recently, Karnataka Chief Minister B. S. Yediyurappa held a review meeting for the sub-urban rail project with the Infrastructure Development Department and BMRCL.
This INR 15,767 crore project will, shall be driven by K-Ride, a joint venture of the government of Karnataka and the Ministry of Railways.
The tender process for the project is anticipated to be completed in the next four months, while the work shall commence in Oct ’21 for the 25.01 km stretch between Byappanahalli and Chikkabanavara.
2. Infrastructure and construction sector
Nod for projects worth INR 194.58 cr in Himachal: The Union Government has approved 12 projects in the state under the Central Road and Infrastructure Fund (CRIF) scheme.
The project developments include:
a) Bridges: Out of the total funds, INR 70.71 crore are for the development of bridges over Bekhli Khud, Sarotha Nallah, Markanda and the Beas river along with a steel bridge in Shimla district.
b) Roads: Road infrastructure to be developed majorly around the Kangra district, along with stretches in Hamirpur, Kinnaur and Mandi districts, at a total investment of INR 123.87crore.
China’s HR-plate export offer weighed down by low demand: The Chinese HR-plate offers are currently ranging at $910-930/t FoB China, against $920-930/t FoB basis a week ago. The leading factors impacting export offers are:-
- Low demand from South East Asian countries on surging Covid-19 cases.
- Low buying interest with the market buzzing with implementation of an export tax.
- Anticipating a further cut in prices, buyers continue to remain on the side-lines.
Outlook:
The gradual reopening of the markets across India coinciding with the arrival of monsoon makes it difficult to gauge the price momentum. Hence, most of the market participants are in wait-and-watch mode although a few opine that the prices shall remain firm in the short-term as mills continue to keep exporting hot-rolled coils in the overseas market since these are fetching higher prices.
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