Trade-level coated flat steel prices continued to move upward this week backed by improved inquiries and demand in the market. Galvanised plain steel coil (GP) prices increased by around INR 300/t ($4/t) w-o-w, whereas pre-painted galvanised iron (PPGI) prices nudged up by INR 200/t ($2/t) in most markets barring a couple where they remained rangebound. The market is buzzing with news about the prospect of an announcement regarding the list price increase by mills for May 2025 sales in the coming days.
The latest weekly assessment, on 1 May shows galvanised plain (GP, 0.8 mm/CTL, 120 gsm, IS277) steel coil prices at INR 65,100/t ($769/t) exy-Mumbai, with offers varying in the range of INR 64,000-65,500/t ($756-773/t) exy-Mumbai, higher by INR 300/t ($4/t) w-o-w. Similarly, pre-painted galvanised iron (PPGI, 0.5 mm/CTL, 90 gsm, IS14246) was assessed at INR 74,200/t ($876/t) exy-Mumbai, with offers at INR 73,500-75,000/t ($876-868/t). Prices are minus GST at 18% (USD 1 = INR 84.6987; INR 1 = USD 0.0118066).
Market updates:
Improving demand boosts prices: The demand from major coated flat steel consuming segments has been witnessing a surge. Distributors across regions informed about the increase in inquiries, especially from green energy, home and commercial appliance manufacturers and infrastructure and construction businesses. The demand from the pre-engineered buildings (PEB) segment has been relatively slower compared to the other two.
The upward movement in the manufacturing purchasing managers index (PMI) over the past couple of months affirms improvement in the manufacturing segment. Manufacturing PMI increased to 58.2 points in April compared with 58.1 points in March. In February, it was around 56.3 points.
List price hike on anvil: Trade market participants are expecting mills to come up with a list price increase announcement for May sales anytime soon. There is market buzz about a price hike but no confirmations have been received yet.
It can be recalled, one of the major private mills announced a list price hike of INR 1,000/t for GP and INR 750/t for PPGI on 18 April. The effective list price thus increased to around INR 64,600/t ($757/t) exy-Mumbai for GP (0.8mm, 80gsm, IS277) exy-Mumbai and INR 74,500/t ($874/t) exy-Mumbai for PPGI (0.5mm, 90gsm, IS14246). The prices mentioned are for coil forms, excluding GST at 18%.
Outlook:
Trade-level prices are likely to continue on the upward trajectory. Improvement in demand, optimistic performance indicators, and mills’ healthy business-to-customer (B2C) segment, especially in infra-construction and automobile sectors, are tailwinds for mills looking to hike prices. Market participants believe that mills are likely to increase prices by around INR 1,500-2,000/t ($18-24/t) for May, and expects announcements in the beginning of next week.
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