Along with HRC and CRC prices, Indian manufacturers have also raised domestic plates prices by INR 1,000/MT.
Current offers for commercial grade (base size 16-20mm) plates are assessed in the range of INR 31,500-32,000/MT (ex-works, excluding excise of 12.5%). While plates offers in Mumbai and Delhi are assessed in the range of INR 36,000-36,500/MT (including excise of 12.5%).
Domestic Demand Scenario for Plates
Plates prices have remained almost unchanged during the month of April after one time hike from manufacturers end in the start of the month.
The key sectors where plates are majorly used include railways, shipbuilding and infrastructure industry.
Railways
In 2016-17 budget, Indian government has announced infrastructure investment plan of INR 8 lakh crore in the coming four years for modernization of rail infrastructure. This will augment plates demand in the upcoming year.
Infrastructure
Due to scarcity of water in the country many infrastructure projects have been stalled which may adversely impact the demand for plates from this sector in current financial sector.
Shipbuilding
Domestic ship building industry has shown growth of 7.01% in the year 2014-15 against -0.4% in the previous financial year.
In order to promote the industry, government has exempted customs and central excise duty on inputs used in manufacturing of ships. Also to promote ease of doing business in this sector, government has simplified tax procedure for shipyards for procuring duty-free goods for ship building and repair. These measures indicate positive sentiments for plates segment in the coming days,
Global Offers
Current plates offers from China are assessed at USD 405-415/MT, FoB China whereas CIS origin S235 grade heavy plates are heard at USD 480-490, FoB Black Sea. In case of Indian plates export offers, SAIL has recently concluded its export tender for plates at USD 420-425/MT, FoB basis.
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