India: Monthly average trade segment prices of HR plates increase by INR 1,000/t

• Prices of HR, HSM plates edge up m-o-m
  
  
• Need-based procurement weighs on market

  
  
  

Monthly average prices of hot-rolled (HR) plates (IS2062, Gr E250 Br, 20-40 mm) increased by INR 1,000/t to INR 51,900/t in January from INR 50,900/t in December.

During the week, as per BigMint's weekly assessment, HR plate (IS2062, Gr E250 Br, 20-40 mm) tags increased by INR 100/t w-o-w to INR 51,000-54,000/t exy-Mumbai on 29 January 2025. Also, prices of hot strip mill (HSM) plates (IS2062, Gr E250 Br, 5-10 mm) increased by INR 200/t w-o-w to INR 48,500-49,500 /t exy-Mumbai. Prices exclude 18% GST.

Market overview

Mills' list prices rise: India's major hot-rolled (HR) plate producers had raised their list prices by around INR 1,000-1,300/t from the end of December 2024 for January 2025 sales. The list prices of HR plates (IS 2062, 5-10 mm) are estimated to range at INR 50,500-54,000/t (exy-Mumbai). Prices are exclusive of an additional 18% GST.

Trade market witnesses limited demand: At the beginning of the week, the trade market experienced a price increase amid expectations of higher mill rates. However, prices stabilised as the month progressed, with subdued demand leading buyers to focus solely on base-level procurement.

"This month, the market had ticked up in the beginning in anticipation of a mill price hike along with the start of last quarter of the financial year. Traditionally, there is good demand in the last quarter but at present that's not the case. The PMI, auto sector and infrastructure sectors performance are all slow," said a market participant.

Global plate export offers rise: The monthly average Chinese heavy plate (SS400) export offers stood at $490/t FOB China for January, down by $23/t from $513/t FOB in December.

Outlook

The market anticipates that the Union Budget and rising mill prices will drive higher trade market prices. Additionally, as these are the final months of the financial year, the deployment of unused government funds and private capital expenditure is expected to boost demand.