India: Festive mood takes hold of the market; trade-level HR plate prices range-bound w-o-w

The approaching Diwali festival has gradually taken hold of the market, pulling the market activities lower. Thus, trade-level prices of hot rolled (HR) plates remained largely range-bound over the week. On the other hand, the focus on developments in the green energy and infrastructure space has kept the order volumes at a good level for the producers, especially the private mills. Thus, the mills have announced a rollover of list prices for plates for November 2023 sales. However, the list price tags remain elusive.

The weekly assessed plates (E250, 20-40mm) stood around INR 64,900/t exy-Mumbai, ranging between INR 61,500-67,000/t exy-Mumbai as on 8 November 2023. This had stood around INR 65.200/t exy-Mumbai in early October. The end-user industrial buyers continue to cautiously satiate their appetite, which has resulted in a lackluster demand. In addition, the labour exodus, and rituals for the Indian major festival of Diwali has started reducing the market activity levels. The prices mentioned above exclude GST at 18%.

Moreover, the wide difference between the mills' list prices and operational trade market prices has kept the latter lofted, avoiding any major drops in the thicknesses above 20mm thickness band.

The market participants are of the opinion that the trade-level activities and demand shall pick up pace post-the festive holidays. The demand, however, is expected to reduce from the government investment led infrastructure and construction segments with a hold on the new project announcements amid scheduled elections in different regions of the country. Whereas, it is being speculated that the non-organised business sectors like Micro, Small and Medium Enterprises (MSMEs), and heavy engineering shall start posting demand. Also, the contract-based exports shall keep the sales ticking and keep the selling pressure in check for major producers.