MIP Anticipation Drives Up Indian Plate Prices

Imported offers for plates remain stable against last week with no buying interest from Indian traders.

Indian steel market has been abuzz with the news of upcoming Minimum Import Price (MIP) on steel imports since last one month.

Current offers for plates of base size 16-20 mm are assessed at INR 25,500-26,000/MT (ex-factory, excluding 12.5% excise).

“Plates prices have risen because of prospects of MIP and safeguard duty on plates. However it is to be seen whether this price rise is sustainable or not in the coming month”, quoted a trader based in Mumbai.

In Oct’15, JSW, SAIL, Essar Steel, and Jindal Steel & Power filed an application with DG Safeguards for imposition of safeguard duty on plates for four yeas in order to protect domestic producers from increased imports.

This application was accepted by DG Safeguards (DGS) and investigation on the same was initiated by DGS asking views of all interested parties within 30 days from the date of notice (Dec 7’15). Thus imposition of safeguard duty on plates is also very much likely in Jan’15.

Brake in Import Bookings

SteelMint has heard that there is no buying interest for imported plate offers as traders are apprehensive of booking imports.

“Whole market is uncertain as government can announce safeguard duty or MIP anytime soon. Only orders booked in previous months are touching Indian shores otherwise no new bookings are being made currently”, quoted an importer based in Ahemdabad.

Last imported offers for commercial grade (A36) plates were heard at INR 270-280/MT from China and at USD 305-310/MT from POSCO-Indonesia. All offers are on CNF India basis.

Plates Prices as on Dec 29’15

Source: SteelMint Research