India: HR-plate prices firm, market awaits clarity on price direction

The trade reference prices of HR-plate in key markets remained range-bound, this week. Domestic trade activity was slow to pick up post the festive holidays as participants await clarity on the price direction amid recent decline in global offers.

For week 46 (8-13 Nov), SteelMint's assessment for HR plates (E250, 5-10mm) remain pegged at INR 71,000-72,000/t ($908-923/t) exy-Mumbai. Prices are basic, excluding GST at 18%.

Sentiments soften with decline in Chinese HR-plate prices: The domestic market participants turned observant as sentiments softened with the decline in Chinese export offers in the past couple of weeks.

The Chinese steel mills have cut their offers by about $25/t w-o-w to $860-870/t FOB basis. Where the beginning of winter season has started weighing on domestic demand, concerns about imposition of export tax kept buyers observant in the overseas market.

"Trade channel partners and end-users are currently observing the market after the significant fall in prices at the global level," said a major distributor based in the northern region.

Restocking activities slowed: The restocking activities were at a good pace throughout Oct'21 with mills increasing their price levels. On the other hand, the demand-supply mismatch because of slow end-user demand at the prevailing price levels resulted in a decline in the restocking need as well.

Outlook
Trade market participants are awaiting clarity around the quantum of price correction. However, steel mills are likely to keep the price momentum sustained, and "a sharp correction in the near term seems unlikely," added a reliable source from a leading steel mill.