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India: Mills increase coated flat steel list prices by INR 1,000/t ($12/t) for Nov'24

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9 Nov 2024, 15:20 IST
India: Mills increase coated flat steel list prices by INR 1,000/t ($12/t) for Nov'24

  • Labour exodus adds to woes of coated products

  • Traders' market prices are still at a discount against mills' list prices

India's major coated flat steel manufacturers increased their list prices for November 2024 sales by INR 1,000/t ($12/t); after a hike of INR 500/t ($6/t) announced for October.

Mills' list prices now stand at INR 60,000-60,500/t ($712-718/t) ex-Mumbai for galvanised plain (GP 0.8mm, 80gsm) coils and pre-painted galvanised iIron (PPGI 0.5mm, 90gsm) coils are at INR 70,000-70,500/t ($830-836/t) ex-Mumbai.

The monthly average trade-level prices of GP (0.8mm / CTL, 120gsm) dropped by around INR 1,500/t ($18/t) m-o-m in October 2024 to INR 57,300/t ($680/t). Similarly those of galvanised plain PPGI- 0.5mm / CTL, 90gsm declined by INR 1,000/t ($12/t) to INR 66,400/t ($788/t) exy-Mumbai in October 2024. The prices mentioned above exclude GST at 18%.

The weakened demand during the monsoon season (July-September) spilled over into the succeeding months and the labour exodus for Diwali and Chhatt pooja added further to the woes of the coated flat steel market.

The traders' market price levels for coated flat products remained at a discount against those of mills' announced list prices, while distributors across markets complained about low-volume inquiries and buying in the last couple of months. "The end-user demand has remained low even after the monsoons receded. The limited time gap between the receding of monsoon and approaching Diwali and Chhatt pooja festivities continued to weigh on buying interest and led to the postponement of procurements in the traders' market," said a major distributor from western India.

The weekly assessment for GP (0.8mm / CTL, 120 gsm) in sheet form increased by INR 500/t ($6/t) to INR 57,800/t ($686/t) exy-Mumbai to INR 57,000-58,500/t ($676-694/t). Similarly, PPGI (0.5mm / CTL, 90gsm) prices rose by INR 800/t ($9/t) to INR 67,100/t ($796/t) exy-Mumbai to INR 67,000-68,000/t ($795-807/t) as on 7 November 2024. The prices mentioned above are exclusive of GST at 18%. (USD 1 = INR 84.3054 ; INR 1 = USD 0.0118616)

Distributor sources are now quoting higher prices with the mills having increased their list prices for two months in a row. However, buyers and sellers both have remained mostly inactive over the last fortnight amid the festivities, rituals and labour unavailability. Thus, clarity on price movements is expected in the upcoming week when market activities pick up, BigMint learnt from various distributor sources.

Near-term outlook

Trade market prices showed an initial increase in November 2024 but sellers opted to quote higher which did little to boost confidence amongst buyers. Prices are expected to move in a narrow band in the coming weeks with the arrival of labourers and the resumption of trade activities after the brief festive lull.

9 Nov 2024, 15:20 IST

 

 

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