Demand for domestic HR-plates has been low for a few months. This trend has been propelled by the major impact of Covid-19-led disruptions and a weak buying interest from end-users on account of higher product prices.
However, the governments’ drive to increase the dependence on ‘green’ electricity, expanding the metro network and electrifying more railway routes is likely to push up the demand for HR-plates in the country.
Furthermore, the country’s infrastructure and construction and power segments are set for a rebound in 2021, which in turn is likely to push up HR-plates demand:
Some orders and projects listed below may rev up the sectors.
Infra and construction
1.KEC International bags orders worth INR 429 cr from civil, railway sectors:-KEC International, has secured new orders of INR 429 crore for civil segment developments and railway projects in India. Along with this, the company has bagged INR 508 crore worth of orders in both Indian and overseas markets.
a)Railways:Indian Railways(IR) has secured orders of INR 294 crore in conventional/ emerging segments in India encompassing overhead electrification(OHE) along with orders for semi high-speed rails for 2 x 25 kV OHE and associated works.
b)Civil:Infrastructure works in the metals and mining segment in India account for INR 135 crore.
c)Cables:Orders worth INR 90 crore have been placed for various types of cables in India and overseas.
d)Transmission and distribution(T&D):Project orders under this segment envisage wider reach across India, Middle East and the Americas. Orders secured for transmission lines and substation construction are worth INR 418 crore.
2.NHAI InvIT gets Sebi nod:The National Highways Authority of India (NHAI) is expected to launch its maiden infrastructure investment trust (InvIT) in a month. The InvIT model, as a concept, has been designed to monetise roads over the next 3-5 years.
On this accord, NHAI has received an approval from the Securities and Exchange Board of India (Sebi).The trust aims to raise INR 5,100 crore, with plans to offer 19 projects worth INR 35,000 crore.
3.NMRC floats tender for Noida-Greater Noida corridor:The Noida Metro Rail Corporation (NMRC), has floated a tender for construction of a 9.6 km long corridor of the Aqua Line (Noida Metro). It involves construction of five elevated stations at Sectors 122 and; 123, Ecotech 12 and Greater Noida Sectors 2 and 4.
The deadline for development of this patch is kept at 24 months from the date of awarding it to the selected bidder.
Limited responses to the tender in the past have led to cancellation of this tender thrice in July ’20, Nov ’20 and Feb ’21.
Power projects
Sterlite Power secures INR 580 cr funding from REC: Sterlite Power has financially closed the project set up by Udupi-Kasargode Transmission Project(UKTL). It has secured the entire debt funding of INR 580 crore from one of India’s largest power sector lenders, REC.
The project includes a 1,000 MVA 400/220 kV Gas Insulated Substation(GIS), the first to be built at Kasargode in Kerala. This 400 k V(Quad) DC inter-state transmission system project spans the southern states of Karnataka and Kerala.
Price trend as of week 25:-
SteelMint’s benchmark assessment for HR-plates(IS-2062/E350) of 5-10 mm thickness, on 17 Jun ’21, had dropped to INR 66,500-67,500/tonne($896-909) exy-Mumbai as against INR 67,000-68,000/t($916-930) exy-Mumbai. Prices are exclusive of GST @ 18%.
Way ahead
The construction and infrastructure industry is expected to be driven by a combination of factors to recovery in 2021. These include government housing schemes, a large captive market and massive pent-up demand after Covid-19 restrictions ease.
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