Plate prices have dropped $31/MT in five weeks
Steel prices in India have dropped due to a temporary weak local demand in finished steel and weak global steel market, according to an industry report.
Plate prices have dropped by another US$6/MT this week (week ended 21 Oct). The market recorded a US$31/MT gradual but substantial drop in plate price over the last five weeks, said the report by Wirana Shipping Corp.
Imported scrap prices have dropped by US$8/MT and over last five weeks prices have registered a total reduction of US$28/MT.
Local billet prices have dropped by another US$11/MT this week.
The local rebar market is weak due to slower demand, resulting in a US$7/MT drop this week.
Due to weaker demand for rebar, there is an excess supply and a lot of inventories at secondary mills due to which production has been slowed down.
However, the market mood is not pessimistic as trading fundamentals are strong.
“We expect demand for construction steel grade to resume after the festival holidays, which should result in price improvements,” said the report.
However, lower prices in international markets due to weaker global demand will maintain some pressure on the extent of price improvements.
Local currency could be under pressure due to increase in oil prices and supplies expected to tighten due to geopolitical tension in the Middle East which accounts for 1/3rd of global crude supply.
Prices offered by ship recyclers have softened further this week by about US$5-10/LT LDT.
Since there has been a continuous drop in plate prices and global scrap prices over the last five weeks, sentiments of ship recyclers are weak and cautious for now.
“We would expect prices offered by ship recyclers to be under marginal pressure for the next couple of weeks,” said the report. Fiinews.com
