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India: Trade-level coated flat steel prices stay range-bound w-o-w

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BigMint Bureau

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10 Jan 2025, 19:06 IST

India: Trade-level coated flat steel prices stay range-bound w-o-w

Uncertainty prevails around Jan'25 list prices

Wary buyers limit procurement to urgent needs

Trade-level Coated flat steel prices remained range-bound w-o-w amid a lack of clarity around list prices for January 2025. Mills have not provided a clear indication about the same, and some industry sources believe that mills might roll over list prices for January 2025 by the middle of the month.

The latest weekly assessment showed galvanised plain (GP, 0.8 mm/CTL, 120 gsm, IS277) steel prices at INR 56,500/t ($658/t) exy-Mumbai, with offers varying in the range of INR 55,500-57,000/t ($646-663/t). Similarly, pre-painted galvanised iron (PPGI, 0.5 mm/CTL, 90 gsm, IS14246) was assessed at INR 66,600/t ($775/t) exy-Mumbai, with offers at INR 66,000-67,000/t ($768-780/t). The prices given exclude GST at 18%.

Monthly average trade-level prices of GPs (0.8 mm/CTL, 120 gsm, IS277) dropped by INR 500/t ($6/t) m-o-m to around INR 57,600/t ($670/t) exy-Mumbai in December 2024. Meanwhile, average monthly prices of PPGI (0.5 mm/CTL, 90 gsm, IS14246) fell by INR 600/t ($7/t) m-o-m to INR 66,600/t ($775/t) exy-Mumbai. The prices provided exclude GST at 18% (USD 1 = INR 85.9245; INR 1 = USD 0.0116381).

Market updates

Mills' indication to raise Jan'25 list prices fails to boost sentiments: According to sources, distributors tried to raise their quotes over the last couple of weeks after some mills showed an inclination to raise their list prices for January 2025 by the previous month's end. However, buyers resisted the higher tags, and the attempt failed amid a lack of clarity around the same, as no official announcements were made.

"Buyers remained cautious about prices and limited their procurement to urgent requirements only. PPGI prices were stable, with demand trickling in from the pre-engineered building (PEB) segment and other infrastructure and construction businesses. However, demand for GP was comparatively weak," said a distributor from western India.

India's manufacturing PMI improves in Dec'24: India's manufacturing purchasing manager's index (PMI) improved slightly by 0.9 percentage points m-o-m to 57.4% in December 2024, as per data from HSBC and S&P Global. However, despite the improvement in the PMI, activity levels in the traders' market and sentiments did not improve. Cautious buyers restricted their procurement to immediate needs only.

Outlook

Trade-level coated flat steel prices should continue to hover at similar levels in the near term. Meanwhile, distributors and buyers await official price announcements from mills, which could arrive by the middle of next week. Some industry sources believe that demand will improve, especially from the infrastructure and construction sector, by the latter half of this month or early February, when the fiscal year-end is around the corner.