JSPL, a primary manufacturer in the Plate industry, officially raises its price by INR 2000-2500/MT (average) across all Plate products. As reported earlier by SteelMint, industry was expecting a price hike of 4-5%. However, the company defied market expectations by raising its prices up to 6%. JSPL believes this rise in prices is well justified owing to a healthy demand in the economy.
As per our conversation with the company’s officials, the company is overly optimistic of a good demand in the domestic market. The company claims its order book to be quite strong and expect this price hike to be well absorbed in the market. On the contrary, many experts are still suspicious of any healthy recovery of demand in the domestic market.
As per industry sources, Imports are currently at the minimum level and the current average CFR Plate offers from china is at USD 580-585/MT (INR 36,000/MT, Excluding Excise Duty), whereas Imports from Japan & Korea is minimal. This has led to an artificial shortage of Plates in the market. Perhaps, this is one of the reasons why market participants believe JSPL was so aggressive in raising its prices.
The Revised rates for Plates are as follows:
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