India: Trade-level HR steel plate prices remain stable

BigMint's weekly assessment for HR steel plates (IS2062, Gr E250 Br, 20-40mm) remained unchanged from the previous week at approximately INR 52,000-55,500/t ($619-661/t) exy-Mumbai as of 11 September 2024.

Meanwhile, weekly prices of hot strip mill (HSM) plates (IS2062, Gr E250 Br, 5-10mm) also remained unchanged at INR 50,000-51,000/t ($595-607/t) exy-Mumbai. This stability was attributed to the decline in hot rolled coil (HRC) prices. The prices mentioned above exclude GST at 18%.

Factors weighing on prices

1. Trade market remains stable: The slow momentum of activities from end-user segments in the past few months have weighed on procurement volumes from the infrastructure and residential segments. As not much demand is there the prices have not fallen further.

"The decline in HRC prices is negatively impacting the overall market. Reduced demand, coupled with abundant raw materials and finished goods, is contributing to this trend. Additionally, the government's slower infrastructure spending and delayed payments in the project segment are further dampening market sentiment," informed a market participant.

2. Decline in global plate prices: Chinese export offers for heavy plates (SS400) have decreased by $5 per ton to $470 per ton FOB Rizhao as of September 11, 2024. This marks the third consecutive week of price decline. Notably, the price on August 14, 2024, was $500 per ton, representing a significant drop of $30 per ton since then.

3. Slow industrial activities weigh on demand: The India Manufacturing Purchasing Manager's Index (PMI) fell to 57.5 in August 2024 against 58.1 in the preceding month, indicating a subdued growth in contrast with 58.3 in June 2024.

Near-term outlook

Market sentiments remain mixed at present, with a section of participants opining that demand will witness an uptick ahead of the festive season, while others raised concerns that due to excess supply and weak demand the market will be under pressure. Thus, prices are more likely to move in a narrow range in the near term.