India: Trade-level HR plate prices remain steady despite subdued demand

• Weekly assessment stable at INR 48,500-49,500/t ($577/t) exy-Mumbai
  
  
• Prices expected to remain rangebound ahead of Diwali holiday break
  
  

Trade-level prices of hot-rolled (HR) plates remained stable despite weak demand in the domestic market ahead of approaching holidays.

BigMint's weekly assessment for HR plates (IS2062, Gr E250 Br, 20-40mm) remained stable at INR 48,500-49,500/t ($577/t) exy Mumbai as of 16 October 2024.

Meanwhile, weekly prices of hot strip mill (HSM) plates (IS2062, Gr E250 Br, 5-10mm) remained range-bound at INR 48,500/49,500 /t exy-Mumbai, influenced by the stability in hot rolled coil (HRC) prices. The prices mentioned exclude GST at 18%.

Factors impacting prices

1. Limited buying interest: The surge in sales has begun to slow down as demand is declining in the market.

"The initial surge in sales at the beginning of the month has significantly diminished due to waning consumer interest. Early expectations of price declines led to a cautious approach among buyers. However, when news of price increases by mills emerged, there was a sudden rush to purchase, primarily driven by the need to fulfill festive delivery commitments. Now that this demand has been met, the market has reverted to a state of limited buying activity," a market participant said.

2. Stable global plate prices: Chinese export offers for heavy plates (SS400) remained stable at $535/t FOB Rizhao as of 16 October.

3. Commercial vehicle sales remain stable: Sales of commercial vehicles remained stable in September at 73,549 units as against 73,547 units in the previous month, as per the data released by the Society of Indian Automobile Manufacturers (SIAM).

Outlook

Demand of plates has begun to slow down and the market is approaching the Diwali holidays. It is expected that current price levels will sustain.