Indian mills further lift HR-plate offers by INR 1,000-1,500/t ($13-20)

India's major HR-plates producers have announced the second round of hike in their list prices by around INR 1,000-1,500/t on improved trades after the festive season.

Effective prices of major mills are as follows-

• Govt owned SAIL has raised HR plate prices by INR 1,000/t and list prices are at INR 45,000-45,500/t (exy-Mumbai).
  
  
• JSPL has increased plate prices by INR 1,500/t. Revised offers stand at INR 46,000/t (exy-Mumbai).
  
  
• Prices do not include GST @ 18%.
  
  

Mills further raise the prices due to the following factors:

1.Uptrend in global plate prices- Chinese mills raise HR plate export offers by $5-10/t w-o-w basis and offering around $530-540/t FoB basis. Strong domestic prices keep higher export offers supported. Thus, higher international prices compelled Indian mills to increases the price in domestic markets.

2.Boost in the Infrastructure sector- As per other media reports, L&T Construction secured a mega-contract from the National High-Speed Rail Corporation (NHSRCL) to construct 87.569 km of the Mumbai-Ahmedabad High-Speed Rail (MAHSR) project, popularly referred to as the bullet train project.

3.Rebound in construction equipment sales - SteelMint while acknowledging other media reports learned that according to data sourced from the Indian Construction Equipment Manufacturers Association (ICEMA), the sales have increased nearly three times during the second quarter compared to the first quarter this year. The construction equipment makers have seen strong demand in August and September compared to the same months last year.

The effective hike was reflected in the trader's market as well. SteelMint's benchmark assessment for HR-plates (base grade IS 2062, 5-10mm) stands at INR 46,000-46,750/t exy-Mumbai, rising steeply by INR 1,000/t against the previous week.

"The demand improved ahead of the festive holidays with buyers rushing to restock amid expectations of a further hike in prices," shared a few north-based market participants.

Domestic plate prices expected to remain strong in Dec- Major steel mills are likely to announce an increase in flat steel prices for Dec deliveries on supply crunch and higher raw material cost. The industry is moving towards recovery from COVID-19 which will improve trades and keep domestic prices supported.