Plate prices remain unaltered for this month on the backdrop of surging Plate imports and seasonal slowdown. Market participants were expecting a correction in Plate price; however manufacturers preferred to hold on prices despite increasing imports.
Imported Plate offers from China are currently in the range of USD 550-555/MT CFR Mumbai for which deliveries are expected in September. One of the importers here in Mumbai commented,
“Currently, Plate prices are trading INR 500/MT higher owing to temporary shortage. Domestic Plate prices of thickness 5-10 mm are at around INR 44,000/MT. We were expecting some consignments from China this week and these were delayed. This has led to a short term rally in domestic prices. We expect the prices to revert back on previous levels in next few days”.
One of the JSPL’s officials while talking to SteelMint expressed his concerns for increasing imports of Commercial grade Plates mainly from China. He said,
“Increasing imports is a concern for the industry. We have heard some deals for Commercial Plates to be settled at USD 530-535/MT. Domestic product prices are under pressure. We have decided to keep prices unchanged for this month.”
Market sources say it is difficult to reduce prices immediately since traders, who are still holding inventories, will be unable to dispose of their old stocks. Traders across some markets are concerned with low volumes of trading activities.
Similarly, Plate prices in Faridabad also remain unchanged. Faridabad, which is one of the largest trading hubs for Plates, has also witnessed low trading volumes. Prices for 5-10 mm HR Plates are in the range of INR 43,000-43,500/MT. Markets here witness some shortage of supply from SAIL, confirmed a trader based in Faridabad.
Exchange Rate – A Crucial Bet
Industry experts believe that exchange rate is going to play a crucial role for determining the pricing in domestic market. If INR depreciates further, the trade dynamics may favor domestic players.
Meanwhile, it was confirmed from one of the senior officials of JSW that prices for Flat products remain unchanged for the month.
*All local prices mentioned above include ED, taxes extra
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