India: Mills reduce plate list prices, trade segment follows suit

• AM/NS India reduces plate prices, others to follow
  
  
• Buyings remain need-based, but bargaining increases
  
  
• Domestic market supply likely to improve with the levy of export duty
  
  

Trade market prices of hot-rolled (HR) plates continued to decline into June 2022, followed by the reduction in prices announced by the integrated steel major AM/NS India. Furthermore, active bargaining, slow conversion of inquiries into sales, and decling global plate prices were among other factors weighing on the prices too. Another major factor is the expected increase in supply of plates in the domestic market with the annoucement of the 15% export duty.

AM/NS India has reduced the list price of plates (E250, 12-50mm) to INR 67,500/t ($871/t) exy-Mumbai effective from 1 June. The mentioned price is exclusive of GST @18%. Other plate producers are likely to follow suit.

SteelMint's assessment for HR-plates (E250, 5-10mm) declined by INR 1,900/t ($25/t) to INR 65,000-66,000/t ($839-852/t) exy-Mumbai this week. The prices for plates (E250, 20-40mm) were assessed at INR 66,000-67,000/t ($852-877/t) exy-Mumbai, treading lower to the prices annouced by the steelmill. Mentioned prices are basic, and exclude GST at 18%

Active bargaining, buying pattern remains need-based
Buyers were aggressive in bargaining on the offer prices of the distributors or traders in the market. Moreover, the trend of buying as per urgent need persists. These factors were the prime reasons behind the continual downtrend in the market prices. "Buyers have spread their requirements and have increased the number of purchase orders placed over the month. This has weighed on the trade volumes as well as prices along with the active bargaining in each spell," shared a major distributor from the northern region.

Decline in global plate prices weighs on market sentiments
The softening of plate prices in the global market has been another dampening factor. The Chinese heavy plates (SS400) export offers have further reduced by $10-30/t to $790-800/t FOB basis this week, compared with the previous week's $800-830/t FOB levels. The prices have continued to fall from the levels of $895-905/t as assessed on 7 April'22.

Near-term outlook
Sentiments remain mixed at present, with a few participants opining that demand will open up with the reduction in prices while other stay bearish and expect further decline. Meanwhile, anticipation of improved domestic supplies amidst export duty announcement is a point of concern for both buyers and sellers.