India: Active Buying Lifts Domestic Plate Prices

This week domestic HR plate prices witnessed uptrend by around INR 500-1000/MT W-o-W in traders market in anticipation of price hike by Indian mills in the month of Jan’20.

Current trade reference prices stand at INR 35,500-36,500/MT (ex- Mumbai), and INR 36,500-37,000/MT(ex- Delhi).Prices mentioned above are basic,and extra GST @18% will be applicable.

Market participants commented that,”Hike in plate prices is expected to be easily absorbed with active inquiries heard trade market. Thus traders and manufacturers remain quite optimistic about price increase in upcoming months.''

Along with this few sources shared that lower inventory levels among mills and increased demand in turn resulted to increase in domestic plate prices in traders market.

Although few remain skeptical regarding acceptance of further increase in prices in the month of Jan '20. Mills are expected to increase flat steel prices by INR 1000-1500/MT in Jan'20.

Chinese plate export offers move up- Chinese heavy-plate export offers move up marginally by around USD 5/MT on bullish sentiments in export market. Also restocking activities among South East Asian buyers ahead of New Year Holidays pushed export offers from China.

Thus, the revised export offers stand at USD 470-475/MT FoB China, which was USD 465-475/MT FoB basis in the previous week.