Monthly average trade prices of hot-rolled (HR) plates increased by around INR 500/t in October from September. The price increase announced by mills in the first week of October pushed tags higher. However, as market participants swerved to the sidelines ahead of Diwali, trade activity got affected towards the month end.
SteelMint’s assessment for HR plate (E250, 5-10mm) averaged at INR 57,700/t in October compared with INR 57,100/t in September. Meanwhile, prices of HR plates (E250, 20-40mm) stood at around INR 61,100/t in October as against INR 60,300/t in the previous month.
Factors supporting trade prices:
1. Better demand for plates: End-user industries have been posting better demand for plates even when HRC prices were under pressure. “The demand for plates has remained better over the month as automotives, wind turbine and a few other industries like PEBs continued to source material even after a price hike by mills earlier this month,” informed credible sources.
For instance, automobile producer Tata Motors continued to show improved production since Q1FY’22. The production numbers touched 243,594 units in Q2FY’23, up by 2.4% m-o-m and 43.1% against the year-ago period.
Also, as regards the infrastructure segment, 687 km were added to the National Highway network in September, which was higher than 469 km in 2021. Also, contracts for another 1,386 km were awarded in September as against 1,348 km in the year-ago period.
2. Prices mostly stable: Prices of plates above thickness of 20mm have remained largely unchanged over the month after having increased towards end-September. Moreover, there was additional demand from the wind turbine segment amid issues in South Korea in the aftermath of typhoon Hinnamnore, sources informed. Demand continued to maintain its pace which kept the trade momentum relatively smooth than for 5-10mm plates.
SteelMint’s weekly assessment for plates (E250, 20-40mm) stood at around INR 60,500-61,500/t unchanged w-o-w. Prices of plates (E250, 5-10mm) dropped by INR 500/t, w-o-w, to INR 56,500-57,500/t following the decline in HR coil prices.
3. Maintenance shutdowns: The maintenance shutdowns taken from mid-July to September helped manufacturers counter price declines by adjusting production volumes. “There is shortage of plates above 40mm, which is anticipated to ease with mills starting to operate at optimal capacity in the near term,” informed distributor sources based in the western region.
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