Indian mills lift colour coated steel prices by INR 1,500-2,000/t ($21-27)

India's major mills have raised colour coated and galvanized steel prices by around INR 1,500-2,000/t in the domestic market for Sept '20 deliveries. After the increase, effective prices for PPGI (90 GSM,0.5 mm) are hovering around INR 61,500/t (ex-Mumbai). Prices do not include GST @18%.

Meanwhile, SteelMint's assessment for PPGI (0.5 mm 90 gsm) trade reference price stands at INR 61,500-62,000/t (ex-Mumbai) and INR 62,000-63,000/t (ex-Delhi).The prices mentioned above are basic, and GST extra @18% is applicable.

The primary reason behind the price surge was the tight supply of HRC in downstream industries. Also, better demand and optimistic sentiments in the colour coated market kept the price largely supported.

"PPGI prices continue to increase even in the rainy season on lower availability of material at the stockiest end," shared a trader based in Mumbai.

Along with this, galvanized plain coil prices also reported an increase for Sep deliveries. Current trade reference prices for galvanized plain coil (0.7- 0.8 mm, 120 GSM) is at INR 49,500-50,000/MT (ex-Mumbai).The prices mentioned above are basic, and GST extra @18% is applicable. After the rainy season ends, the demand for colour coated and galvanized products is expected to increase which may result in an uptrend in prices in coming months.