India : Lower Consumer Expenditure Curtail Domestic PPGI Prices

This week Indian colour coated prices drop further over dwindling demand following a reduction in consumer expenditure in the domestic market. Poor sales in the auto and real estate sector and lower demand in consumer durable goods weigh on domestic PPGI prices.

On a weekly basis domestic PPGI prices reduced by around INR 500-1000/MT in the traders market. Currently trades reference prices for PPGI (0.5 mm, 90GSM) are hovering in the range of INR 51,750-57,000/MT (Ex-Mumbai) depending on companies make and INR 53,500-54,500/MT (ex-Delhi). The prices mentioned above are basic and extra GST@18% is applicable.

A trader based in Mumbai shared that, "demand for consumer durable goods are anticipated to bolster with an uptick in buying activities ahead of the festive season."

In addition to this significant reduction in HRC prices, in-turn resulted to a reduction in prices of downstream products like PPGI in the domestic market. Industry participants believe that revival in demand can be expected post monsoon season.

Furthermore, liquidity issue continues to persist which leads to delayed payment cycle resulting in gloomy sentiments in the domestic market.

Domestic Galvanized plain coil prices- Currently trade reference prices for Galvanized plain coil (0.7- 0.8 mm, 120 GSM) is at INR 44,750-45,000/MT (ex-Mumbai), INR 47,000-47,500/MT (ex-Delhi), INR 47,000-47,500/MT (Ex-Hyderabad) and INR 47,500-48,000/MT(Ex-Chennai). The prices mentioned above are basic and GST extra @18% is applicable.