India: HR plate prices fall by up to INR 700/t w-o-w amid slow market conditions

BigMint's weekly assessment for HR plates (IS2062, Gr E250 Br, 20-40mm) stood at around INR 52,000-54,500/t ($619-661/t) exy-Mumbai as of 13 November 2024, down INR 700/t ($8/t) w-o-w.

Meanwhile, weekly prices of hot strip mill (HSM) plates (IS2062, Gr E250 Br, 5-10mm) remained stable at INR 48,500-49,500 /t ($595-607/t) exy-Mumbai, influenced by the decline in hot rolled coil (HRC) prices. The prices mentioned above exclude GST at 18%.

Factors weighing on HR plate prices

Trade market continues to fall: The trade market continues to decline, with limited demand across various sectors contributing to the ongoing price downturn.

A market participant noted, "The continued decline in HRC and CRC prices is being driven by weak demand. Specifically, reduced activity in the infrastructure and automobile sectors is putting downward pressure on prices."

2. Stability in global plate prices: As of 13 November, 2024, export offers for Chinese heavy plates (SS400) remained steady at $515/t FOB, according to the latest market assessment.

3. Pick up in India's PMI: India's manufacturing sector experienced a resurgence in growth during October, following a three-month slowdown. This acceleration was primarily driven by a significant uptick in demand, which positively impacted business sentiment. The PMI moved up to 57.5 in October'24 against 56.5 in the preceding month.

Outlook

India's PMI has shown signs of improvement, and with the new US administration poised to take over, demand is expected to remain supported in the medium term. However, in the short term, prices are expected to remain rangebound.