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India: Coated flat steel trade prices remain range-bound

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BigMint Bureau

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5 Oct 2024, 14:25 IST

India: Coated flat steel trade prices remain range-bound

Trade market prices of coated flat steel coil remained range-bound this week, as market participants awaited July price announcements amid lacklustre demand in domestic and overseas markets.

The weekly assessment for galvanised plain (GP 0.8 mm/CTL, 120 gsm) in sheet form dropped by INR 200/t to INR 57,000/t exy-Mumbai, within a range of INR 56,000-57,500/t. Meanwhile, the price of pre-painted galvanised iron (PPGI 0.5 mm/CTL, 90 gsm) remained stable at INR 66,000/t exy-Mumbai, ranging between INR 65,500-66,500/t as of 3 October 2024. The prices mentioned above are exclusive of 18% GST.

The monthly average prices in September fell to INR 58,800/t exy-Mumbai (down INR 2,500/t m-o-m) for galvanised plain coils (GPC 0.8 mm, 120 gsm). Similarly, the average price for pre-painted galvanised iron (PPGI 0.5 mm, 90 gsm) was around INR 67,500/t exy-Mumbai (down INR 2,100/t m-o-m) during the same period.

HDGI export offers remain stable: In the current week, export offers for hot-dipped galvanised iron (HDGI) coils (0.50mm, 900-1,250mm) were assessed at $735/t FOB west coast, remaining stable against the last week's prices.

Decline in monthly average of HRC, CRC prices: The trade-level hot-rolled coils (HRC, IS2062, Grade E250, 2.5-8mm) registered a m-o-m decline, decreasing by approximately INR 2,500/t to reach INR 48,000/t in September 2024, as opposed to the previous month's figure of INR 50,500/t exy-Mumbai. Simultaneously, cold-rolled coils (CRC, IS513, Gr-O, 0.9mm) experienced a reduction of INR 1,800/t m-o-m, settling at INR 55,900/t in September 2024, compared to the preceding month's INR 57,700/t exy-Mumbai.

Market activity slows: Domestic market demand remained sluggish. Buyers are making purchases only to meet immediate needs. The persistent price decline in recent months has discouraged distributors and sellers from holding inventory. This has contributed to a slowdown in market activity.

Furthermore, market participants are waiting for the steel producers to announce their prices for October sales, which is expected in the next couple of days.

Outlook

As the mills are rumoured to increase the HRC and CRC prices the same is expected for list prices of coated flat steel coil . With upcoming festive season prices are expected to remain range-bound.