India: Coated Steel Prices Decline Further on Demand Worries

Lower expenditure on consumer front along with pessimistic demand pulls down PPGI prices further in domestic market.

This week domestic PPGI (Pre painted galvanized iron) coil prices witnessed further fall by around INR 600-1000/MT in major markets on the back of lower spending on consumer durable goods along with tedious demand experienced in domestic market.

Last week PPGI prices had come down by upto INR 750/MT in domestic market.

Current reference prices in traders market of retail section for PPGI (0.5 mm, 90GSM) are hovering in the range of INR 56,250-60,500/MT (Ex-Mumbai) depending on companies make and INR 57,500-59,000/MT (ex-Delhi).The prices mentioned above are basic prices excluding GST@18%.

As per market reports slowdown in consumer buying amid monsoon season leads to inventory build up across trade channels since last few days.Thus revival for the same is expected in coming quarters as demand started to pick up in domestic market.

In addition to this, monsoon season also resulted to subdued trades in coated steel market.

Domestic Galvanized plain coil prices- Currently trade reference prices for Galvanized plain coil (0.7- 0.8 mm, 120 GSM) is at INR 49,250-50,000/MT (ex-Mumbai),INR 49,000-50,000/MT (ex-Delhi),INR 49,500-50,500/MT (Ex-Hyderabad) and INR 50,000-50,500/MT (Ex-Chennai).The prices mentioned above are basic and GST extra @18% is applicable.