India: Major steel mill raises coated flat steel prices by INR 1,750/t for Oct'23

Indian steel mills announced an increase of INR 1,750/t in coated flat steel prices earlier this week for early October sales. Subsequent to the revision, list prices of the integrated steel major, AM/NS India, for galvanised plain (GP 0.8mm, 80gsm) coil stands at INR 72,250/t exy-Mumbai, and pre-painted galvanised iron (PPGI 0.5mm, 90gsm) prices are at INR 83,250/t exy-Mumbai. Prices are not inclusive of GST at 18%.

Trade-level prices rise in September: Coated flat steel prices continued to rise in September. GP (0.8mm, 120gsm) was recorded at INR 70,100/t exy-Mumbai on 5 October, up INR 1,500/t since the first week of September (INR 68,800/t). However, prices edged up INR 200/t w-o-w. Meanwhile, PPGI (0.5mm, 90gsm) prices were assessed at INR 79,800/t exy-Mumbai, up INR 200/t w-o-w. Prices rose by INR 700/t against the first week of September (INR 79,100).

Govt spending on power, infra supports demand: Spending on infrastructure and construction has led to improved buying from these segments, but demand has been dull in the traders' market with buyers exercising caution.

PEBs are among the industries that benefit from infrastructure development. Meanwhile, the use of structural steel has boosted coated steel demand amid usage for roofing and the construction of enclosures. The government's push to modernise the railway infrastructure under the 'Amrit Station' project and the building of metro stations is likely to provide a wider base for coated steel consumption.

Furthermore, the government is enhancing its capacity for green and clean energy. Apart from wind power segment, solar energy is another segment that is getting a boost. As per the Central Electricity Authority, there has been an addition of 465 megawatts (MW) in the solar power installed capacity in August, with capacity reaching 1,610 MW over the previous month. 4,830 MW capacity has been added between April and August this fiscal year.