India: Domestic Plate Prices Remain Firm Over Sparse Trading

The domestic plate market remains largely stable with minimal changes as demand failed to pick up this week over lean buying. Meanwhile few trade sources shared that, lower inventory levels among mills may result in short supply and can push prices upward in the near term.

Thus amid mixed market sentiments, this week, domestic HR plate prices moved up slightly by INR 250/MT in the Delhi region. However, in Mumbai region plate prices remain largely stable.

Current trade reference prices stand at INR 35,000-36,000/MT (ex- Mumbai), and INR 35,250-36,250/MT (ex- Delhi).Prices mentioned above are basic, and extra GST @18% will be applicable.

"Recovery in domestic demand seems difficult over weaker consumer spending along with a slowdown in the construction and infrastructure sectors. Meanwhile, amid slow demand higher prices seem difficult to absorb in the domestic market," said a plate trader based in the Mumbai region.

Further, Indian steel mills may raise plate prices further in Jan'20 over anticipation of better demand and bullish sentiments in the domestic market.

Chinese plate export offers move up with softening US-China trade war-
Chinese heavy-plate export offers increases by USD 8-10/MT on the back of a successful US-China phase one talk boosting the global market sentiments. Meanwhile, improved demand in the domestic market also supported the rise in export offers.

Thus, the revised export offers stand at USD 465-475/MT FoB China, which was USD 457-465/MT FoB basis in the previous week.

The office of the United States Trade Representative (USTR), declared a reduction in 15% tariffs on USD 120 billion worth of Chinese imports to 7.5%, while the existing 25% tariff on USD 250 billion worth of imports shall stay unchanged. Further, the USTR announced the cancellation of a new 15% tariff on USD 160 billion worth of Chinese imports from 15th Dec'19.