India: Inactive Trades Pull Down Domestic HR Plate Prices

This week domestic HR-Plate prices witnessed a fall of around INR 350-650/MT W-o-W in the key markets owing to limited trade inquiries, low sales volumes, and increased inventory among traders in the domestic market.

Currently, SteelMint's price assessment stands at INR 38,000-39,000/MT (ex-Mumbai), and INR 38,000-38,500/MT (ex-Delhi). Prices mentioned above are basic, and extra GST @ 18% will be applicable.

Trade participants shared that "increase in inventory weigh on domestic HR plate prices since traders have already restocked the material in the past few months. Also, they resist making fresh bookings and are expecting further downside in prices."

Earlier this month, Indian steel mills raised HRC and HR plate prices by INR 1000-1500/MT for Feb deliveries.

Chinese heavy plate export offers plunge on Coronavirus threat- This week, the Chinese heavy-plate offer softened further by USD 20-25/MT on a weekly premise as the coronavirus threat persists in the country keeping the market participants cautious. Also, the impending delay in their resumption resulted in rising inventories, which in turn resulted in a downtrend in the nation's HR plate export offers.

Thus, Chinese mills trim HR plate export offers to expedite sales in the overseas market since the domestic prices went down over bearish market sentiments and limited trades.

Thus, the nation's HR plate export offer stands at USD 460-465/MT Fob China, which was USD 480-490/MT in the preceding week.

Major plate producers in China were offering HRC at USD 470/MT FoB China.