Indian flat steel traders are holding huge inventories this month on account of weaker demand prevailing in the domestic market. Dull demand is weighing on the domestic prices.
Current prices of commercial grade plate are hovering in the range of INR 38,000-38,500/MT(ex-Mill).Prices are exclusive of excise duty 12.5%.
And in major markets prices of plates are seen at INR 40,500-41,000/MT(ex-Delhi) and INR 41,000-41,500 (ex-Mumbai).Prices are inclusive of excise duty 12.5%.
Although, demand of plates in the flat steel market have become quite bleak and prices are likely to fall further in the domestic market. Meanwhile, traders have also started providing discounts to attract customers.
However plate export offers from India are assessed in the range of USD 500/MT,FoB India. But no major deals are concluded yet. Since Indian exporters are eyeing on Chinese export offers to sustain in the global market. This may lead to rise in plate export offers from India.
Chinese Mills Hike Plate Export Offers Over Domestic Gains-
Chinese manufacturers have raised their plate export offers owing to positive sentiments prevailing in the domestic market. Export offers of plate have witnessed the sharp hike of USD 10-15/MT due to rise in paper market.
Currently plate export offers from China are heard to be in the range of USD 475-480/MT,FoB China. Despite holding huge inventories coupled with lacklustre demand in the domestic market, Chinese mills have decided to raise the plate prices. However no major deals have settled yet.
Meanwhile Chinese domestic plate prices are assessed in the range of RMB 3,580-3,600/MT which is equivalent to USD 521-524/MT, Prices are including VAT taxes.
However,bids received from Bangladesh are heard to be in the range of USD 505/MT,CFR basis.Chinese mills have become bullish in the domestic market and it is anticipated that further hike is possible owing to gains in paper market. But it is quite uncertain that rise in prices might not be accepted in the market .
CIS Countries Plate Prices Fall by USD 13/MT W-o-W
CIS-Origin plate export offers are recorded in the range of USD 480-505/MT,FoB Black Sea. However,last week plate export offers was in the range of USD 480-530/MT on FoB basis.
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