The domestic HR-plate price continues to rise with the gradual recovery in demand. SteelMint’s benchmark assessment for the HR-plate stands at INR 49,500-50,000/t exy-Mumbai, soaring up by INR 2,500/t against the previous week.
Meanwhile, a few major plates producing mills have announced an increase of about INR 2,000-2,500/t ($27-34) in their list prices for Dec ’20.
Effective HR plate prices of mills for Dec ’20-
- SAIL- Revised HR-plates list price stands at INR 47,300/t exy-Mumbai.
- JSPL- revised offers stands at INR 48,500/t exy- Mumbai.
- Prices do not include GST @18%
Factors driving the rally in HR-plate prices-
1. Surge in global HR-plate prices- The Chinese heavy plate (SS400, 5-10 mm) export offers have continued their rally since the beginning of Nov ’20, ascending by $35/t to $550-555/t FoB China in the current week. Improved domestic market demand on strong futures led to the hike in nations plate export offers.
2. Robust demand from the automobile sector- Automobile sector has witnessed a gradual recovery with the easing lockdown norms resulting in improved buying in HR plates. HR plates are mainly used for the base structure of three-wheelers and above.
3. Pre Engineered Building (PEB) industry performing well: PEB industry is also performing well, still it has scope to grow with an increase in construction and infrastructure sector activities.
4. Wind and Power sector witnesses improved demand- Wind and Power sector are also posing increased demand on the push provided for cleaner energy by the government agencies.
5. Ship-building industry showing signs of recovery- Ship-building industry too is showing signs of recovery and is expected to pick up in Q4.
Domestic plate prices remain bullish in Dec ’20- Trade source shared with SteelMint that plate prices are expected to remain strong in Dec ’20 on active buying. Also, major steel mills are eyeing for second price hike in Dec ’20 by around INR 1,000-1,500/t in expectation of price support in the domestic market.
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