After keeping MS plate offers unchanged for 15 days, POSCO Indonesia cut its plate prices by USD 5-10/MT. Current offers are being assessed in the range of USD 360-365/MT.
In last week of July, offers for commercial grade A36 and base size of 16-20 mm were assessed at USD 370/MT, CNF India. As per trade sources, there was no major buying interest at this price level. The reason being Indian players preferring cheaper Chinese offers, which were in the range of USD 330-335/MT, CNF India.
In order to deal with weak buying sentiments, POSCO has reduced its plate offers by USD 5-10/MT. The same are being offered in the range of USD 360-365/MT. Market participants anticipated that this price will attract few buyers. There is no import duty on products from Indonesia due to recent preferential trade agreement signed by Indian government with ASEAN countries. Whereas, current import from China attracts a duty of 10%, which will increase to 12.5% in this month.
Domestic players may relax over currency depreciation
As reported today, China devalued its currency by 2.2% against US dollar to make exports more viable and to combat trade imbalances. This has resulted in depreciation of Indian rupee against US dollar, making import for Indian players costlier. Thus, it is anticipated that Indian currency depreciation will increase buying interest from domestic players.
Export not viable from India
Indian MS plate prices are assessed at USD 350/MT, FoB East Coast India. However, there are no official offers, but exporters believe that manufacturers will be ready to sell at USD 350/MT, FoB if they get firm buying interest.
MS plate export is not viable from India owing to cheaper offers from Chinese suppliers. Moreover, with Chinese currency devaluation, surge in exports from China is anticipated.
Leave a Reply