India- Slow Buying Pulls Down Domestic HR Plate Prices

This week Indian HR-Plate prices continued treading downwards with correction of INR 250-450/MT across major markets (Delhi & Mumbai). Slowdown in buying activities over bleak demand fuel pessimistic market sentiments and drag down plate prices in domestic market.

Thus, current trade reference prices for HR plate (5-10mm, IS2062) are hovering around INR 35,500-36,000/MT (ex- Mumbai) and at INR 34,800-35,800/MT (Ex-Delhi).Prices mentioned above are basic and extra GST @18% is applicable.

Significant fall in HRC prices have resulted to bearish market outlook which in turn continues to keep domestic HR-plate prices under pressure.

Thus, trade sources are expecting discounts and rebates from major Indian steel mills to stimulate buying in domestic market. Also market participants shared that with easing of monsoon season and beginning of festive season may improve trades in domestic market.

A trade based in Mumbai shared that "Demand has been bottomed out and prices have reached to its lowest. Any further downside will continue to bring further pessimism in domestic market."

Few other sources shared that, cash crunch continues to remain a critical issue along with higher interest rates on loans from banks hamper buying activities in domestic market.

Chinese plate export offers remain largely stable- This week Chinese plate export offers remained largely stable owing to improved trades in domestic market. Thus restocking activities by traders ahead of the Golden week holidays scheduled from 1 Oct'19 kept nation's plate prices stable. However, demand from overseas buyers continued to remain dull.

Currently, Chinese origin heavy plate prices stand at USD 468-475/MT FoB China which was USD 470-475/MT FoB basis in the previous week.

Meanwhile, demand from overseas market continue to remain weak. Thus, overseas buyers have adopted wait and watch mode in expectation of further downside in Chinese HR-plate export offers.