India: Trade segment prices of HR plates spike by INR 5,700/t ($74/t) w-o-w

The trade level prices of hot-rolled (HR) plates increased steeply by around INR 5,700/t ($74/t) in key markets this week. The steep hike in prices has come on the back of surging global prices as well as the steep increase in raw materials costs.

For week 11 (7-12 Feb'22), SteelMint's assessment for HR-plates (E250, 5-10mm) increased by INR 5,000/t ($65/t) to INR 75,500-76,500/t ($986-999/t) exy-Mumbai. Prices are basic, excluding GST at 18%. However, demand in the traders' market continues to remain weak, SteelMint learned from reliable sources.

Spurt in raw material prices: Prices of steel making materials like pig iron and coking coal have increased steeply against the backdrop of the Russia-Ukraine geo-political tension. For instance, prices of domestically produced steel-grade pig iron have rallied to INR 60,500/t ($792/t) exw-Durgapur as assessed on 11 Mar'22, up by INR 5,100/t ($67/t) since the beginning of the month. On a monthly comparison the same is up by a steep INR 8,800/t ($115/t). On similar lines, prices of Australian-origin premium hard coking coal (HCC) has also been on a consistent rise from $483/t CNF Paradip, India seen at the beginning of the month to $693/t CNF as assessed on 11 Mar'22.

Plate export offers from India also on a rise: Plate export offers from India, unlike those of hot-rolled coils (HRCs), are on a rise for the European market. An Indian major plate producer booked a consignment of 20,000 t plates, a mix of S235 and S355 grades (12-40mm) for export to Europe earlier this week, SteelMint learned from reliable sources. The deal was sealed at $1,300/t CFR Europe for S235 and at $1,350/t CFR for S355. Delivery pertains to end-April- early May. Fresh offers for S235 (12-40mm) plates are now at around $1,400/t CFR Europe.

Global plate export offers up: The export offers for plates are also on a rise at the global level. For instance, the current week's Chinese heavy plate (SS400) export offers were at $870-895/t FOB China, having moved up steeply by $80-90/t against the levels of $780-815/t FOB seen in end-Jan'22. Moreover the same is up by $30-35/t compared with $840-860/t FOB a week back.