India: Coated flat steel prices soften as demand slumps, trading slows

• GP prices down, PPGI stable across regions
• Further price slide expected amid seasonal disruption

India’s coated flat steel market remained under pressure as weak demand and heavy monsoon rains continue to slow trading activity across key regions. With limited buyer interest and no signs of demand recovery, market sentiment remains firmly bearish.

The latest weekly assessment on 10 July showed GP (0.8 mm/CTL, 120 gsm, IS277) prices at INR 63,200/t ($737 /t) exy-Mumbai, down INR 600/t ($7/t) w-o-w, with offers ranging between INR 62,700 -63,700/t ($731-743/t).

Meanwhile, PPGI (0.5 mm/CTL, 90 gsm, IS14246) was assessed at INR 73,900/t ($862 /t) exy-Mumbai, with offers hovering between INR 73,500-74,500/t ($857-869/t). Prices are exclusive of 18% GST. (USD 1 = INR 85.709322) (INR 1 = USD 0.011667342)

Market update:

Muted demand persists

The coated flat steel market is witnessing increased pressure on spot prices, with distributors noting transactional rates slipping further due to a lack of buying interest. Market participants expect prices to soften by another INR 500-1,000/t in the near term as demand remains weak and seasonal headwinds persist.

“Demand for GP coils has clearly weakened, pushing prices lower, while PPGI has remained relatively stable with only minor adjustments across regions,” said a distributor based in western India.

“In addition to heavy rainfall disrupting movement across several regions, the upcoming Kanwar Yatra is expected to affect logistics in north India, adding further pressure on trade,“ said a distributor based in north India.

Distributors across key markets reported subdued activity, with limited participation from downstream sectors such as appliances, construction, and infrastructure. Consumer goods sales are reported to be below expectations, and industrial product demand is also notably low.

“Overall, the market remains quiet, with no major demand triggers in sight,” a northern India-based trader added.

Outlook 

Looking ahead, coated flat steel prices are expected to remain under pressure, with market participants bracing for further declines amid tepid demand. Moreover, in the absence of significant improvement in end-user demand or restocking activity, spot prices are likely to drift lower in the coming weeks.