India: Trade level coated flat steel prices stable w-o-w; participants await mills' price announcement for Mar'24

Trade level prices of coated flat steel products have remained range-bound on a weekly comparison amid the cautious approach of buyers and sellers refraining from reducing their offer quotes. Moreover, with the February month coming to a close, both sellers and buyers are keenly waiting for the list price announcement of mills for the March 2024 sales.

The weekly assessed price of Galvanised Plain (GP 0.8mm, 120gsm) edged down by INR 100/t averaging at INR 65,500/t and staying in the bounds of INR 65,000-66,500/t while those of Pre-painted Galvanised Iron (PPGI 0.5mm, 90gsm) at INR 75,500/t, ranging between INR 75,000-76,000/t as of 22 February 2024. The above prices are on an exy-Mumbai basis, excluding GST at 18%.

The availability of coated flat steel products stands decent in the traders' market amid the slow yet steady end-user buying and cautious approach towards restocking by distributors, a few reliable trade market sources pointed out. The improved infrastructure and construction activities in the pre-election period have been a relief for the manufacturers and distributors in the north and west zones. Meanwhile, the closure of export deals in a few overseas markets is also helping relieve the selling pressure from mills, an EXIM market participant informed. Thus supplies of coated products from a few private mills have turned erratic, he added.

However, the improved production and stable consumption volumes on a monthly comparison have kept the market cautious about possible oversupply in the market. Moreover, the production volume in Apr-Jan FY'24 has increased by 17% with the consumption volumes tagging along with a rise of 15% against the corresponding period last year (CPLY).

The trade market sentiments are experiencing some buoyancy amid improved exports and pre-election demand from various sectors like infra-and-construction, and green energy. However, the traders' market participants are quizzical about any spurt in demand amid a stall in new project announcements in the government-funded infra-and-construction space, until the elections and the liquidity issues because of the same. Thus, trade market prices are likely to fluctuate in a narrow band in the near term.