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India: Trade-level coated flat steel prices drop up to INR 1,700/t m-o-m in Jan'24

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3 Feb 2024, 17:14 IST
India: Trade-level coated flat steel prices drop up to INR 1,700/t m-o-m in Jan'24

Trade-level prices of coated flat steel products have dropped around INR 1,300-1,700/t in January 2024 compared with the previous month. Lacklustre traders' market demand and weakening upstream product prices kept coated flats prices under pressure during the month.

The monthly average prices in January dropped to INR 66,500/t exy-Mumbai (down, 1,300/t m-o-m) for Galvanised Plain Coils (GPC- 0.8mm, 120 gsm). Concurrently, those of Pre-painted Galvainised Iron (PPGI- 0.5mm, 90gsm) averaged around INR 76,600/t exy-Mumbai (down, 1,700/t m-o-m) in the same time frame.

The weekly assessment for GPC (0.8mm, 120 gsm) stood rangebound at INR 65,500-66,500/t exy-Mumbai (down, INR 200/t), and that of the PPGI (0.5mm, 90gsm) at INR 75,500-76,500/t exy-Mumbai (down, INR 300/t) as on 1 February 2024.

Steel mills continued to enjoy better demand prospects from the construction and the allied sectoral demand amid increased government focus on infrastructure development and improving logistics connectivity through various modes. This is considered under the heads of the business-to-customer (B2C) segment where the traders' market demand remained subdued owing to the need-based buying by end-industrial buyers.

The activity reports on India's national highway construction for December 2023 showcased an addition of 968 kilometres (km) in the highway network, according to the recent data released by the Ministry of Road Transport and Highways (MoRTH). This was higher by 194 km against November 2023, however was slightly down by 40 km from December 2022. The cumulative figures stand higher by 442 km for the April-December 2023 period at 6,216 km against the corresponding period last year.

The other major sector driving demand for coated flats has been the green energy segment. There has been an impressive addition of 1,007 megawatts (MW) m-o-m in the installed capacity of solar power units in December 2023 raising it to 73,318 MW, as per the Central Electricity Authority data. Similarly, the wind power segment also saw an increase of 173 MW m-o-m in its installed capacity to 44,736 MW during the same month.

The recent budget announcement has been a welcome note for the steel industry and shall provide a further boost to the infrastructure and construction sector along with the focused growth in the green energy sector.

Trade market sentiments remained mixed, with an expectation of prices to remain range-bound in the near term. Moreover, Indian major private coated flat steel producers are yet to announce their list price tags for February 2024. Market participants are also awaiting clarity on the price support or rebates offered by the mills for January 2024, informed reliable distributor sources. However, market chatter is being heard about an increase of INR 1,000-1,500/t in the list price tags of private steel mills for February 2024 amid an increase in the cost burden because of elevated prices of basic steel-making raw materials.

3 Feb 2024, 17:14 IST

 

 

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