India: Hot-rolled steel plate prices in traders' market remain stable w-o-w

Trade-level prices of hot-rolled plate-mill (PM) plates (IS2062, Gr E250 Br, 20-40 mm) remained stable w-o-w. BigMint's weekly assessment of HR plate (IS2062, Gr E250 Br, 20-40 mm) remained stable in the range of INR 49,000/52,500/t ($578-619/t) exy-Mumbai on 18 December 2024. Additionally, prices of hot strip mill (HSM) plates (IS2062, Gr E250 Br, 5-10 mm) were rangebound at INR 47,500-49,000/t ($560-578/t) exy-Mumbai. Prices exclude 18% GST.

Market overview

Slow demand hits trade prices: Market trade prices experienced a downward pressure attributed to subdued buyer demand. This subdued demand stemmed from a reluctance among buyers to engage in significant procurement activities.

Small and medium-sized market participants, facing liquidity constraints and limited access to financing, were compelled to minimize inventory buildup. Consequently, their procurement activities were restricted to small quantities, primarily focused on fulfilling immediate operational needs.

"The automobile sector is currently experiencing year-end shutdowns and financial closures, leading to a temporary halt in demand from this sector. Overall demand for plates has also exhibited a decline. Securing new orders is becoming increasingly challenging, as demand is primarily driven by immediate needs and is limited to small order volumes," said a market participant.

Global plate export offers remain stable w-o-w: Chinese heavy plate (SS400) export offers remained steady at $515/t FOB China this week. Buying inquiries for Chinese export plates were limited over the past week, as major buyers were waiting for for the lowest-priced cargoes in China's market. Additionally, buyers from the Americas are largely in a holiday mood due to the upcoming Christmas and New Year celebrations, resulting in reduced negotiation activity.

Outlook

The underperformance of coil prices, coupled with limited buying interest in the traders' market, is expected to impede any significant movement in thicker gauge steel plate prices. As a result, prices are likely to remain within a narrow range.