India: Trade level coated flat prices edge down by up to INR 700/t w-o-w

This week witnessed a further decline in trade-level prices of coated flat steel products due to subdued demand. As of 11 January, 2024, the weekly assessment revealed that Galvanised Plain (GP) coil prices were in the range of INR 66,000-67,000/tonne (t) ($794-807/t), marking a w-o-w decrease of INR 400/t ($5/t). Similarly, Pre-painted Galvanised Iron (PPGI) prices experienced a w-o-w drop of INR 700/t ($8/t) to reach INR 76,000-77,500/t ($915-933/t) as of the same date.

These prices, based on an ex-Mumbai basis and inclusive of profiling costs, exclude GST at 18% and should be calculated separately.

Despite major coated flats-producing mills announcing a INR 1,000/t ($12/t) increase in the first week of the month, current list prices for GP (0.8mm, 80gsm) range between INR 66,500-68,750/t ($800-828/t) ex-Mumbai. Meanwhile, PPGI (0.5mm, 90gsm) list prices stand at INR 79,000-80,500/t ($951-969/t) ex-Mumbai. The prices mentioned above do not include GST at 18%.

In the realm of traders' markets, distributors reported a slight uptick in inquiries this week, marking a modest improvement from the subdued demand experienced in the first week of the month. Despite this, end buyers continued to make urgent need-based procurements, keeping distributors and other sellers actively engaged in negotiations in the spot market.

There is a potential for trade prices to increase in the near term, albeit gradually. Steel mills are adjusting their price tags, allowing the traders' market to absorb the heightened cost of production. The market exhibits mixed signals regarding end industrial demand, creating anticipation regarding how prices will evolve. This is particularly noteworthy amid expectations of an upswing in 'derived demand' from ongoing government projects in the infrastructure and civil construction sector.