India: Domestic PPGI Prices Decline Over Slow Buying

This week India's domestic PPGI prices witness decline by INR 500-1000/MT owing to weakening market sentiments and dull buying prevailing in domestic market. Festive season along with liquidity issue in fewer parts of western region leads to weak purchases in domestic market.

Current trade reference prices for PPGI (0.5 mm,90GSM ) are hovering in the range of INR 63,000-65,000/MT (Ex-Mumbai).The prices mentioned above are basic prices excluding GST@18%.However JSW is offering around INR 70,000-71,000/MT (Ex-Mumbai,GST@18%.) in traders market.

However PPGI (0.8 mm 90GSM) prices in Delhi is around INR 66,000-67,000/MT (ex-Delhi, GST extra @18%).

Thus major Indian steel mills may roll over flat steel prices for upcoming month amid sluggish demand.However they are also planning to provide discounts and rebates post Diwali to push buying.

However in the beginning of the month, major Indian steelmakers had increased PPGI prices by around INR 1,250-2,000/MT.

Galvanized Plain Coil prices -This week domestic GP prices move down in traders market amid mute demand in domestic market ahead of festive season. Prices have come down by around INR 1000-1500/MT in last two weeks.

Currently trade reference prices for Galvanized plain coil (0.8 mm, 120 GSM) is at INR 54,000-56,000/MT (ex-Mumbai),INR 55,500-56,000/MT (ex-Delhi),INR 57,500/MT (ex-Hyderabad) and INR 56,000-57,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.

Indian GP & Coated Imports to India in Apr-Sep'18- According to Joint Plant Committee data,Indian GP/GC and coated imports stood at 0.638 MnT during Apr-Sep'18.Major importers were Korea at 0.28 MnT,Japan at 0.15 MnT. followed by China at 0.06 MnT,and Vietnam at 0.07 MnT in Apr-Sep'18.