Indian Plate Export Offers Unlikely to be Accepted by European buyers

According to trade sources, Indian MS plates offers continue to remain high for European countries despite low buying interest.

Current offers for base grade plates are assessed at around USD 410-420/MT, FoB India main port, whereas buying interest is anticipated at USD 370-380/MT, FoB India.

According to a buyer based in Europe, offers from an Indian private mill is at around USD 470-480/MT CFR Europe. He mentioned that prices are not workable and he is expecting prices to be in the range of USD 430-440/MT CFR Europe.

Unfeasible Imports from Other Countries

European Union (EU) is currently investigating anti dumping probe on Chinese plates . Whereas there are limited plates export offers from Korea. On the other hand, strong Japanese currency, Yen has made exports unviable for Japanese manufacturers.

Seasonal Slack in European Steel Demand

The current demand for plates in Europe is quite slow during summers amid seasonal slowdown. The manufacturing units have planned to go in for maintenance work during this period and are ready to lower down their domestic plates prices to secure sales volume. This has also added to the low buying interest for India’s plates export offers.

Unawarded Plates Export Tender

The plates export tender of 10,00 MT quantity floated by SAIL (Steel Authority of India Ltd) on 18 Jun’16 received lower bids than expected. The company received bids at USD 353/MT, FoB Vizag basis. Whereas the company’s expectation was USD 390/MT, FoB Vizag and thus the tender remained unawarded.

India’s total plates expoorts stand at 0.10 MnT in first quarter of FY17 (Apr-Jun’16) against 0.08 MnT in last quarter of FY16 (Jan-Mar’16).

Plates Export Prices as on 21 Jul’16