Indian HR Plate Prices Inch Down on Slow Buying

Domestic HR-plate prices have observed minimal fall this week in key markets on softening market sentiments amid increasing inventories with traders. Sales remained slow as buyers are not actively making fresh purchases on stagnant demand. Prices have come down by INR 200/MT W-o-W.

Thus, currently, SteelMint's price assessment stands at INR 38,000-38,750/MT (ex-Mumbai), and INR 38,000-38,300/MT (ex-Delhi). Prices mentioned above are basic, and extra GST @ 18% will be applicable.

Trade participants shared that price increase announced at the beginning of the month was difficult to be absorbed in the market since bookings were made earlier in anticipation of a further increase in prices. Thus, enough inventories in hand may lead to further downside in plate prices.

Also, a plate trader in Mumbai shared that "We are not holding the prices for large quantities and are trying to ease out the inventory as buffer stock is creating hurdle and hurting profit margins of various traders and stockists on lower sales."

Chinese HR plate export offers fall by USD 10 - This week Chinese heavy plate export offers fell by USD 10/MT W-o-W basis to entice overseas buyers and push trades in the export market. Few mills are selling the material at competitive prices also over higher inventories.

Currently, the Chinese heavy plate export offer stands at USD 450-465/MT FoB China in comparison with USD 460-465/MT FoB basis in the preceding week.

Meanwhile, market participants anticipate that plate export offers may rebound further as the steelmakers are resuming gradually. However, domestic prices also showed slight improvement this week.

The Chinese domestic market had witnessed an extended delay in resumption after the New Year holidays owing to the containment of Coronavirus contingent since the first case reported in Wuhan on 24 Jan'20.