India: Restocking Demand Continues to Drive Domestic Plate Prices

This week, the domestic HR-Plate prices witnessed a further uptrend on the back of prevailing optimistic sentiments in the domestic market. Restocking demand in the trade segment amid active buying pushed the prices upward in the domestic market.

Thus, current trade reference prices stand at INR 37,000-37,250/MT (ex- Mumbai), and INR 37,500-38,000/MT(ex- Delhi). Prices mentioned above are basic, and extra GST @18% will be applicable.

Also, few trade sources shared that tight supply in a few major markets also resulted in an uptrend in plate prices.

Few of them also commented that the demand may remain soft in the upcoming weeks as traders have already purchased enough material in Dec month in fear of price increase by major Indian steel mills.

Last week, Indian steel producers raised plate prices for the months of Jan'20 owing to improved demand in the domestic market.

Chinese heavy-plate export offers rise amid tight supplies- Chinese heavy-plate export offers moved up slightly by around USD 5/MT. Owing to the tight supplies while domestic buying continued to remain better over steady prices.

Also, a gap between offers and bids resulted in thin trades in the export market.

Fresh HRC plate export offers by major plate producers stand at USD 480-485/MT FoB China, which was USD 470-475/MT FoB basis in the previous week. However, customers are biding on the lower side.

Also, trades remained slow ahead of Chinese New Year holidays scheduled towards the month-end.