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India: Trade-level prices of HR plates drop INR 1,600/t m-o-m in Sep'24

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BigMint Bureau

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5 Oct 2024, 15:07 IST

India: Trade-level prices of HR plates drop INR 1,600/t m-o-m in Sep'24

Need-based procurement limits demand, prices

Slow industrial output keeps market under pressure

Trade-level prices of hot-rolled (HR) plates dropped around INR 1,600/t amid weak buying activities in the domestic market.

BigMint's monthly average price for HR plates (IS2062, Gr- E250 Br., 20-40 mm) declined to INR 53,300/t ($634/t) exy-Mumbai in September 2024 from INR 54,900/t ($653/t) a month ago. Notably, prices of the product have been on a downtrend throughout Q2FY'25 (July-September 2024), with monthly average prices declining from INR 58,000/t ($690/t) exy-Mumbai in June to INR 57,000/t ($678/t) in July.

Factors impacting the price momentum

1. Limited buying interest: Procurement occurred on an immediate-need basis, which impacted prices and led to a bid-offer disparity. This trend ultimately resulted in prolonged negotiations, sources informed.

2. Rise in global plate prices: Chinese export offers for heavy plates (SS400) increased by $30/t to $510/t FOB Rizhao as of 1 October 2024 from $480/t on 25 September 2024. Notably, this was the second consecutive rise in prices in recent times.

3. Slow industrial activities weigh on demand: The India Manufacturing Purchasing Manager's Index (PMI) dropped to 57.7 in September from a five-month high of 60.9 in August. This reflects a slowdown in manufacturing activities.

Near-term outlook

Market sentiments are currently mixed. Some participants believe that demand will increase with the festive season, while others expressed concerns that the market is inclined toward lower prices, suggesting it may remain range-bound.