India: Trade-level coated flat steel prices rise by up to INR 300/t ($4/t) w-o-w

Coated flat steel prices increased by INR 200-300/tonne ($2-4/t) w-o-w. Meanwhile, market participants await mills' list price announcements for January 2025 which kept trade market activities slow.

The current weekly assessment showed galvanised plain (GP, 0.8mm / CTL, 120gsm, IS277) steel prices at INR 57,700/t ($674/t) exy-Mumbai in the range of INR 56,500-58,000/t ($660-678/t). Similarly, the pre-painted galvanised iron (PPGI, 0.5mm / CTL, 90gsm, IS14246) assessment stood at INR 66,600/t ($778/t) exy-Mumbai between INR 66,000-67,000/t ($771-783/t). Prices mentioned above exclude GST at 18%.

Monthly average trade-level prices of GP (0.8mm / CTL, 120gsm, IS277) dropped INR 500/t ($6/t) m-o-m to average around INR 57,600/t ($673/t) exy-Mumbai. Meanwhile, average monthly prices of PPGI (0.5mm / CTL, 90gsm, IS14246) fell by INR 600/t ($7/t) m-o-m to INR 66,600/t ($778/t) exy-Mumbai. Prices mentioned GST at 18%. (USD 1 = INR 85.6084 ; INR 1 = USD 0.0116811)

Other updates:

Production, consumption in November: Coated flat-steel (including galvalume) production volumes increased to 1.166 million tonnes (mnt) in November from 1.154 mnt in October. In the year-ago period, it was around 0.941 mnt. These include colour-coated flat steel production volumes which accounted for 0.255 mnt in November compared with 0.26 mnt a month ago. However, consumption declined m-o-m from 0.978 mnt in October to 0.846 mnt in November.

End-user industrial demand: Demand from the green energy segment improved in November, hitting the second-highest addition of 2,049 MW in the installed capacity of solar power. This was about 1,357 megawatts (MW) in October and 1,330 MW in September. The highest addition in this fiscal year (FY) was 2,224 MW in August 2024, as per the Central Electricity Authority (CEA) data. The business-to-consumer segment sales of the mills continued to gain support from the above.

Meanwhile, activities remained slow in the infrastructure-construction and the pre-engineered buildings sectors which helped little in easing inventories. Demand from the automobile industry slowed as manufacturers resorted to reduced production and annual maintenance with the approaching year-end.

Lacklustre demand in trade channel: Coated finished-flat steel demand in the traders' market continued to remain slow in December. "Buyers remain cautious and are raising purchase orders for quantities meeting their urgent requirements," said a major distributor from northern India. Also, market participants were confused amid rumours about the imposition of 25% steel import duty circulated by some industry participants over various communication channels, which hindered trades this month.

Outlook: Trade-level prices lacked support in December 2024. However, there are indications in the market of a slow-paced recovery in the near term. News of the proposed 25% steel import duty and the recent declaration pertaining to initiation of investigations on imports from other countries have instilled some positive sentiments. Imports from China, Vietnam, South Korea and Japan are also under the scope of investigation.