Trade-level coated flat steel prices stayed at similar price levels for three consecutive weeks. Trade market participants were puzzled by major producers delaying their list price announcements for the middle of the month. Meanwhile, buyers’ approach to procurement remains their urge for urgent restocking in view of the slow market momentum.
The latest weekly assessment showed galvanised plain (GP, 0.8 mm/CTL, 120 gsm, IS277) steel prices at INR 57,500/t ($665/t) exy-Mumbai, with offers varying in the range of INR 56,500-58,000/t ($653-670/t). Similarly, pre-painted galvanised iron (PPGI, 0.5 mm/CTL, 90 gsm, IS14246) was assessed at INR 66,400/t ($767/t) exy-Mumbai, with offers at INR 65,500-67,000/t ($757-774/t). The prices are minus GST at 18% (USD 1 = INR 86.5162; INR 1 = USD 0.0115585).
Market updates
Distributors quote higher, but buyers resist: The quotes for coated flats were increased by the distributors pushing the range by INR 500/t compared with the last two weeks. However, buyers’ affinity for low-priced procurement and low volumes as per the purchase orders kept weighing on price levels in the traders’ market.
“The market has been abuzz with news about the levy of steel import duty floated by some industry sources for over a month now. Mills have rolled over their list prices for January sales, while the trade-level tags have remained low over the last 3-4 months. This has pushed distributors to quote higher in the market to avoid further loss of margins,” said a distributor source based in western India.
“Buyers stay observant about the market conditions and procure on their urgent requirement basis avoiding losses from bulk procurement. Supply has been limited from a major producer this month, but has failed to boost the end-industrial buyers’ confidence to procure at higher price levels,” said a north-based distributor source.
B2C sales shield mills from inventory pile-ups: Some industry sources informed BigMint about mills entering into deals directly with end-buyers lately. This has kept the inventory moving out of the producers’ stockyard for the last 4-5 months. Also, a major producer, has booked a major share of their produce in January via the business-to-consumer (B2C) sales route, restricting supplies to the distributor network. The consumption of coated flat steel averaged around 0.892 mnt in the 8M FY 2025 (April-November) compared to the 0.769 mnt in the FY 2024 (April-March), the data for December is yet to be released.
Outlook: Trade -level prices are likely to move in a narrow band in the near term. The approaching fiscal year-end might boost sales in the traders’ market by the first fortnight of February. However, it is tough to say if the buyers shall change their preference from low to bulk procurement anytime soon.
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