This week domestic HR plate prices witnessed an upside trend by INR 500/t ($7) on improved buying and optimistic market trends. SteelMint’s benchmark assessment for HR-plates (base grade IS 2062, 5-10mm) stands at INR 45,000-45,500/t exy-Mumbai.
“Sentiments have been strong and buying rates have improved in the market as buyers are rushing to replenish their inventories ahead of an anticipated price hike post-festivities,” shared a Northern-India-based trader.
Last week major HR plate manufacturers raised list prices by INR 1,000-1,250/t in Nov ’20 on bullish market sentiments and improved buying.
HR Plate prices witness uptrend due to-
- Improved demand in the OEM sector- Plates-consuming sectors like OEMs, PEB, Infrastructure, heavy machinery, and white goods witnessed improved buying. Meanwhile, as per market sources, the demand from water pipelines is expected to get revived early in Dec, whereas oil and gas industries shall pick up from Jan onwards.
- Higher global prices- This week, Chinese mills raised HR export offers by $10-15/t w-o-w basis and are offering around $525-535/t FoB basis. The appreciation of RMB against dollar resulted in a hike in export prices. Thus global uptrend compelled Indian mills to increase domestic plate prices.
Outlook- Demand is good and there is further scope of increase in prices by the major steel mills. Post-Diwali, trade activities are expected to pick up. Also, demand from water pipeline industries which had been held back due to elections in Bihar and Madhya Pradesh is expected to revive in the upcoming month.
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