Indian domestic HR-plate prices hit an all-time high- SteelMint data

Domestic HR plate prices have rallied further this week supported by hikes made by Indian mills and improved trades happening in domestic markets. SteelMint's benchmark assessment for HR-plates (base grade IS 2062, 5-10mm) stands at INR 47,500-48,500/t exy-Mumbai, soaring up by INR 1,700/t w-o-w. Prices have hit an all-time high as per data maintained by SteelMint

SAIL announced third price hike for Nov- SAIL- the govt-owned steel company further raised its HR-Plates prices by INR 750/t ($10) which is the third consecutive price hike this month. Before this, the major plate producing mills had increased prices by INR 1,000-1,250/t at the beginning of the month and INR 1,000-1,500/t in the previous week.

Factors behind the uptrend in plate prices are mentioned below:

1.Upward momentum of global HR-plate prices- Chinese steel mills have consistently increased their heavy-plate prices this month with a recent increase of $10/t this week. The current HR-plates export offer stands at $540-550/t FoB China, up from a $530-540/t FoB basis a week back. Higher global prices motivated Indian mills for a recent price hike.

2. Improved demand from downstream industries- The downstream industries like Pre Engineered Buildings (PEB), infrastructure and construction, and Pipes. Thus higher HR-plates prices are absorbed in the market. These industries have gradually increased their activities on strengthening demand with the easing of the COVID related restrictions.

3. Significant increase in HRC coil prices- Higher HRC coil prices resulted into spurt in plate prices. Domestic HRC prices have surged by almost INR 9,000- 10,000 in the last six months.The mills had announced two rounds of hikes in HRC list prices and SAIL revised thrice in the month of Nov'20

Outlook- Major plate manufacturers have indicated a steep hike in plate prices in the upcoming month on optimistic demand and active buying from end-users.