India: Mills increase HR plates prices, markets follow

Trade-level reference prices of hot-rolled plates (HR plate) have been hiked for February sales in key markets. This move happened close on the heels of leading plate producers annoucing a hike for early Feb'22 sales. For instance, AM/NS India and JSPL both raised list prices by INR 1,000/t and INR 3,000/t respectively for plate mill plates (PMP) earlier this week. The price hike comes due to rising global plate and raw material prices, which are pushing up the cost of production.

Effective list prices

• AM/NS: PMP (20-40mm, E250)- INR 67,500-68,000/t ($904-910/t)
  
  
• JSPL: PMP (8-40mm, E250)- INR 68,500-69,000/t ($917-924/t)
  
  

For week 6 (31 Jan'22- 05 Feb'22), SteelMint's assessment for HR-plates (E250, 5-10mm) increased by INR 900/t ($12/t) to INR 66,000-66,500/t ($884-890/t) exy-Mumbai. Prices are basic, excluding GST at 18%. However, the demand in the traders' market is showing a rather slow recovery, SteelMint learned from reliable sources.

Global HR plate prices revive: Export offers in global markets have started to show an uptrend after a prolonged period of downtrend. For instance, export offers of Chinese heavy plates (SS400, 12-40mm) edged up to $780-815/t FOB ahead of the Lunar New Year holidays from the levels of $770-790/t FOB in mid-Jan'22. This has come after a continual fall from levels of $920-930/t FOB witnessed towards the end of Oct'21.

Also, a private Indian mill was heard to be offering plates (S235, 12-50mm) at around $795/t CFR Europe basis this week.

Demand drivers to get a boost from Budget'23: Inland logistics infrastructure along with others like air and marine were the main focus of Budget 2022-23, laying emphasis on a smoother transport system. While the National Infrastructure Pipeline (NIP) targets expansion of 25,000 kms of National Highway network, the PM Awas Yojna is looking at construction of 80 lakh households which will boost the construction and housing sectors. Furthermore, the railway network is set to expand by 2,000 kms with an introduction of new-generation trains and cargo terminals. These sectors consume the lion's share of plates, which is likely to boost the demand.