India: Domestic HR-plate prices fall INR 500/t, demand subdued

Domestic HR-plate prices dropped by INR 500/t this week with meek demand from the downstream industries and the end-users in the trade segment.

For week 39 (20-25 Sept'21), SteelMint's assessment for HR plates (IS 2062/E250, 5-10mm) stood at INR 65,000-65,500/t exy-Mumbai. Prices are basic, excluding GST at 18%.

SteelMint in conversation with market participants learned-

Trades continue to remain slow: The disruptions being caused by the recent disturbance in climate and heavy rainfalls in the central and northern provinces are keeping demand at bay. Also, buyers are biding their time waiting for further decline in prices.
"There are very few buyers at the prevalent prices in the domestic market. Also, the slump in activities owing to the erratic rainfalls lately has slowed demand from the construction businesses as well," shared a dealer from north India.

Restocking activities have slowed down: Traders and dealers are wary of building up stocks owing to the weak buying interest in the domestic market. Few distributors said, "the requirements have been generally low from the buyers, and slow activity in the construction industry has kept demand from allied industries like fabrication and heavy engineering low as well."

China heavy plate export offers remain flat amid holidays: The Chinese heavy-plate export offers remain pegged at $910-920/t FOB levels this week. The holidays on account of the Mid-Autumn festival have kept market activities muted for the initial three days of the week.

Outlook
The monsoons are nearing an end and the construction equipment and commercial vehicle manufacturers are looking forward to better demand in Oct'21 with a pick-up in the construction and mining businesses.
Meanwhile, there is a market buzz about a few mills going to raise prices in the plates segment in October. But, seeing the prevalence of low demand scenario, it remains unclear about what challenges will be there in the upcoming week.