India: Coated flat steel prices firm on expected improvement in demand but buyers remain cautious

• Trade remains cautious despite price hike
• Inventory overhang, weak offtake weigh on market

The Indian coated steel market witnessed a price increase for both GP (galvanised plain) and PPGI (pre-painted galvanised iron) in the week ending 7 August 2025. However, despite the recent uptick, market participants remain cautious amid concerns that prices could soften again if demand does not sustain as expected.

The hike in prices reflects near-term optimism and limited supply pressures, but market chatter suggests that any sustained price support will depend on actual improvement in downstream demand. Some sources indicated that if buying remains limited or inventory builds up, prices could witness downward adjustments in the coming weeks.

The latest weekly assessment on 31 July showed galvanised plain (GP) coil (0.8 mm/CTL, 120 gsm, IS277) prices at INR 62,500/t ($714/t) exy-Mumbai, up INR 500/t ($6/t) w-o-w, with offers ranging between INR 62,000 -63,000/t ($709-721/t).

Meanwhile, pre-painted galvanised (PPGI) (0.5 mm/CTL, 90 gsm, IS14246) was assessed at INR 73,200/t ($838/t) exy-Mumbai, with offers hovering between INR 72,500-74,000/t ($830-846/t). Prices are exclusive of 18% GST. (USD 1 = INR 87.3801) (INR 1 = USD 0.011444254)

Market Update

Although coated product prices have been raised by INR 500/t w-o-w, the sustainability of this uptrend remains uncertain due to persistently weak end-user demand.

A north India-based distributor stated that prices may find some support post-Janmashtami and closer to mid-August, but added that the current inventory levels are high, around 20-25 days, leading to a preference for liquidation over fresh restocking.

“Although the price increase has been announced by steel manufacturers, it appears that it will only take effect after Independence Day. This is because many distributors are holding high inventories and intend to liquidate them quickly to honour their channel finance and other commitments,” a distributor informed.

In south India, a local distributor informed of a rise in inquiries but acknowledged pricing pressure due to oversupply and competitive sales tactics.

“While inquiries are good, we may need to consider adjusting the price due to increased competition,” he said, pointing to the mismatch between manufacturer offers and real-time market absorption.

Outlook

Coated steel prices recorded an uptick this week, reflecting early signs of sentiment recovery. However, trade-level caution persists as high inventories and weak downstream offtake limit the impact of announced hikes.