India: Domestic PPGI Prices Slash Further Amid Increased Imports

This week domestic PPGI prices in India have corrected further by INR 750-1000/MT W-o-W in traders market amid sluggish demand,cost effective imports and weak buying interest prevailing in domestic market. Meanwhile trade participants shared that demand supply mismatch has also pulled down prices of PPGI in domestic market.

Another reason is significant falling of domestic HRC,CRC prices in traders market. This week domestic HRC prices traded almost one year low. Meanwhile cheaper imports arriving from China and Vietnam have also attributed to decline in PPGI prices 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 54,500-55,000/MT (Ex-Mumbai).The prices mentioned above are basic prices excluding GST@18%.

Offers from a major Indian steel maker for the same grade are heard around INR 62,000/MT (Ex-Mumbai, GST@18%).

In Delhi, PPGI (0.8 mm 90 GSM) trade reference prices is around INR 57,500-58,000/MT (ex-Delhi,GST extra @18%).

A trader based in Delhi commented that,"Increased supply and slack demand will result to further correction in PPGI prices in domestic market.Also cheaper imports arriving to India results to downtrend in PPGI prices in domestic market".

Country-Wise PPGI Imports to India in Apr-Dec'18 - As per latest release of Joint Plant Committee data,major exporting nations of PPGI were Vietnam at 0.14 MnT,China at 0.11 MnT followed by Japan at 0.22 MnT and Korea at 0.39 MnT in Apr-Dec'18.

Domestic Galvanized Plain Coil prices corrected further in traders market- Domestic Galvanized plain coil prices fell further in traders market by INR 500-1000/MT this week.

Currently trade reference prices for Galvanized plain coil (0.8 mm, 120 GSM) is at 47,000-51,000/MT (ex-Mumbai),INR 48,000-49,000/MT (ex-Delhi),INR 49,000/MT (ex-Hyderabad).The prices mentioned above are basic prices excluding GST@18%.