Recently, Indian manufacturers have raised the flat products prices by INR 1,500-2,000/MT which also includes HR plates prices. Flat product prices are constantly rising on account of higher coking coal prices.
Current offers of HR Plate (ex-mill) are hovering in the range of INR 33,500-34,000/MT. Whereas offers from ex-Mumbai and ex-Delhi are heard to be in the range of INR 40,000/MT.
The price rally in coking coal and iron ore prices are constantly moving upwards which has led to rise in flat products prices. However, traders and stockiest are anticipating that the hike in flat product prices will be accepted by the market.
As the old inventories are on the verge of completion therefore increased buying activities may show a sign of positive sentiments which might lead to further rise in Plate prices.
Although Indian government has imposed safeguard duty on 24 Nov’2016 due to which imports of HR plates are highly restricted providing enough scope to the manufacturers to raise the plate prices.
China plate export offers shown uptrend this week amid gains in the domestic market. Current export offers of HR plate are heard to be in the range of USD 455-465/MT, FoB China.
Although, Chinese market remain volatile as the situation of stalemate prevails between buyers and the sellers. By far no major deals are concluded yet. However drop in paper market may lead to decline in plate export offers.
Hence , increased cost of production is supporting higher export offers but it is anticipated that uncertainty in Chinese market might lead to fall in export offers.
CIS-origin plate export offers are assessed in the range of USD 450-455/MT, FoB Black sea.