Indian PPGI Prices Stable; Market Sentiments Positive as Imports Turn Costlier

This week domestic PPGI prices in India have remained stable post price hike announcement by major steelmakers in the month of September by INR 1000-2000/MT.Improved bookings and costlier imports amid currency depreciation has kept PPGI prices firm in domestic market.

Offers from major manufacturers are as follows: JSW Steel is offering PPGI (0.5,90 GSM) is around INR 70,000/MT (ex-Mumbai, GST extra). Meanwhile Essar Steel is offering PPGI (0.5,90 GSM) at INR 65,000/MT (ex-Mumbai, GST extra). Market participants highlighted that in Mumbai, trade reference prices are around INR 64,000-65,000/MT (ex-Mumbai, GST extra).

In Delhi,manufacturers are offering PPGI prices around INR 65,000-65,500/MT (ex-Delhi, GST extra).

Market participant based in Mumbai commented,"Improved bookings of PPGI and GP kept prices supported this week.However surge in prices in the beginning of September likely to be absorbed in the market over better demand in domestic market. Imports have turned costlier amid currency depreciation".

Galvanized Plain Coil prices in domestic market remain firm - Last week major Indian steelmakers have surged GP (Galvanized plain coil) prices by INR 1,000-1,250/MT for the month of September. Major Indian mills like JSW Steel and Essar reported that they are already done with bookings for this month.

Currently trade reference prices for Galvanized plain coil (0.8 mm, 120 GSM) is at INR 55,000-58,500/MT (ex-Mumbai), INR 54,500-55,000/MT (ex-Delhi), INR 55,500-59,000/MT (ex-Hyderabad).The prices mentioned above are basic prices excluding GST@18%.

India's GP/GC & PPGI Imports in FY18 - According to data maintained with SteelMint, India imported 1.44 MnT galvanized and coated steel in FY18 primarily from South Korea, China , Japan and Vietnam. However with imposition of BIS standards and anti dumping imports are likely to come down.