India: Domestic HR-plate prices decline ahead of festive holidays

Domestic HR-plate prices declined this week in the major markets as restocking demand slowed down with the Diwali festive mood setting in.

For week 44 (25-30 Oct'21), SteelMint's benchmark trade reference price assessment for HR plates (IS 2062/E250, 5-10mm) stood at INR 71,500-72,500/t ($---956-969/t) exy-Mumbai. Prices are basic, excluding GST at 18%.

Reasons for the decline

1. Market activities slow down amid festive fervour: Market activities remained affected as the festival of Diwali is nearing. Trade activities slowed down as there were fewer buyers while most of the participants have retreated ahead of the festival. Also, it is to be noted that prices had gained traction based on the emergence of pent-up demand from the trade channel partners who were working on lean inventories till late Sept'21.

2. Industrial demand remains slow: Demand from construction projects has remained need-based due to higher prices, and seasonal disruptions lately. The industry majors had kept their procurements focused on the critical projects and those nearing completion.
Also, the semiconductor shortages kept demand low, especially from major OEMs and allied industries like fabrication.

3. End-user demand yet to pick up: End-user demand remained subdued since the outburst of the second wave of Covid in mid-Mar'21. Furthermore, elevating trade-level prices had kept enquiries limited from their end.

Outlook
Market activities are likely to gain momentum post-Diwali holidays on the back of increased inquiries from the infrastructure and construction segments, which may keep prices supported in the near term.