Indian Plate Prices find Support as Import Offers Stabilize

The free fall in Plate prices stabilized this week as import offers from China remained constant as compared to last week. Minor correction of INR 200-300/MT was reported in some markets.

Domestic Plates of 5-10 mm traded at around INR 40,500/MT levels this week. Continuous fall in imported Plate offers led to correction in domestic trading prices in last few weeks. Some Plates of thickness greater than 10 mm have corrected between INR 500-700/MT in last week.

Plate manufacturers expect imported Plate prices to settle at these levels as China’s Steel major Baosteel kept prices unchanged for December. But, traders hold a contrarian view. They speculate that imported Plate offers may correct further by 2% in upcoming days. Chinese Plates were offered at USD 490-495/MT CIF India.

A Plate dealer in Faridabad quoted, “Currently, trading prices for 12-20 mm thickness are in the range INR 40,500-41,000/MT. Whereas, 22-40 mm thick Plates is offered at INR 41,500-42,500/MT levels.”

Prices in Mumbai also remained volatile in last 3 weeks. Imported Plates from China were offered at USD 490-495/MT CFR India. Trade sources in Mumbai said that SAIL’s Plate prices are trading between INR 40,500-42,500/MT levels. Dealers in Ahmedabad were worried due to fall in buying activities from manufacturing units. Plates of thickness 12-20 mm traded at INR 40,800-41,000/MT.

“Unless the demand from infrastructure segment picks up, Plate sales will be under pressure. There is no cash in the system and thus traders are restricting from booking bulk quantities. We expect the prices to settle at these levels if imports stabilize,” stated a trader in Ahmedabad.

In Chennai, prices for 5-10 mm thick Plates were INR 40,800-41,500/MT. Trading volumes were low and demand from EPC contractors was stable. Demand from heavy machinery & other local fabrication units was low compared to previous month.

*All prices in INR/MT mentioned in the article are inclusive of Excise Duty, VAT extra.