India: Limited demand pulls down trade-level coated flat steel prices by up to INR 1,100/t

Trade-level prices of coated flat steel products edged down by INR 800-1,100/t towards the end of the week. Lacklustre demand in the traders' market and weakening upstream product prices kept coated flats under pressure.

The weekly assessment for galvanised plain (GP 0.8 mm/CTL, 120 gsm) in sheet form dropped by INR 1,000/t to INR 58,300/t exy-Mumbai, with prices in the range of INR 57,500-58,500/t, and that for pre-painted galvanised iron (PPGI- 0.5 mm/CTL, 90 gsm) dropped by INR 800/t to INR 67,000/t exy-Mumbai, with prices in the range of INR 66,000-67,500/t as of 21 September 2024. The prices mentioned above are exclusive of GST at 18%.

Market highlights

Need-based procurement prevails: Demand in the domestic market remained lacklustre. Buyers procured only enough to fulfil urgent requirements. Moreover, with the continuous decline in prices over the past few months, distributors and sellers are not willing to keep inventories. This has led to a slowdown in trade market activity lately.

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

HRC, CRC prices remain on steady downtrend: Hot-rolled coil (HRC) declined by INR 1,000/t, with prices range-bound at INR 47,000-51,000/t. Similarly, cold-rolled coil (CRC) prices also decreased by INR 1,000/t, maintaining a range of INR 55,000-60,000/t across various markets as of 20 September 2024.

This could impact the price trends of value-added coated steel products.

Outlook

Given the downturn in the general flat steel market and limited demand, prices of value-added coated steel products are expected to follow the same path and remain rangebound at current levels.