India : Domestic PPGI Prices Jump in October Ahead of Festive Season

Following hike in HRC,CRC prices in beginning of this week,major Indian steelmakers have increased PPGI prices by around INR 1,250-2,000/MT in domestic market.

Indian steel mills have increased flat steel prices significantly in anticipation of improved demand from automotive sector ahead of upcoming festive season.Secondly,Indian currency depreciated to 73.74 against USD results to costlier imports.Thus driving domestic PPGI prices in upward direction.

Offers from major manufacturers such as : Essar Steel have raised PPGI (0.5mm,90 GSM) by INR 1250/MT and are heard offering around INR 66,500-67,000/MT (ex-Mumbai, GST extra).The prices mentioned above are basic prices excluding GST@18%.

In Delhi,a major manufacturer hike PPGI (0.8 mm 90GSM) price by INR 1500/MT which is heard around INR 66,500-67,000/MT (ex-Delhi, GST extra).

JSW Steel have increased PPGI (0.5mm,90 GSM) by INR 2000/MT and is offering around INR 72,500-73,000/MT (ex-Mumbai).However company is offering INR 74,000/MT for major projects.The prices mentioned above are basic prices excluding GST@18%.

However increased prices will be pass on to the traders market in coming week.

Galvanized Plain Coil prices increases in domestic market- This week GP (Galvanized plain coil) also witness increase in domestic market by around INR 1,250-1,500/MT in October.

Currently trade reference prices for Galvanized plain coil (0.8 mm, 120 GSM) is at INR 56,250-59,750/MT (ex-Mumbai),INR 55,000-55,500/MT (ex-Delhi), INR 57,000-59,500/MT (ex-Hyderabad) and INR 57,000-57,500/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.

However as per trade sources demand in domestic market continue to remain sluggish over thin trades.Thus hike in flat steel prices in domestic market seems uncertain to absorb over dull buying.