- Limited movement in GP and PPGI
- Prices expected to stay range-bound
The Indian coated flat steel market remained subdued this week. Trade-level prices for galvanised plain (GP) edged lower, though some movement was reported in regional markets. In contrast, pre-painted galvanised iron (PPGI) prices saw sharper declines, with demand nearly stalled. Overall, sentiment continues to remain sluggish amid poor buying interest.
The coated flat steel market remained weak, with overall activity remaining sluggish. Galvanised plain (GP) registered limited movement, while the colour-coated segment (PPGI) saw pressure as demand slowed further.
Market participants expect the weak trend to continue through October. However, buyers are waiting for price clarity from the mills which are likely to roll over prices in October.
As per the latest weekly assessment on 1 October, GP coils (0.8 mm/CTL, 120 gsm, IS277) is at INR 61,500/t ($694/t) exy-Mumbai, down by INR 400/t w-o-w, with offers in the range of INR 61,000-62,000/t ($688-699/t).
Meanwhile, PPGI (0.5 mm/CTL, 90 gsm, IS14246) is assessed at INR 71,100/t ($802/t) exy-Mumbai, down by INR 900/t w-o-w, with offers ranging between INR 70,500-71,500/t ($795-806/t). Prices are exclusive of 18% GST. (USD 1 = INR 88.6924; INR 1 = USD 0. 0112749)
Market updates
The overall coated flat steel market remained weak across regions this week, with subdued demand and limited buying interest keeping activity low. Market participants highlighted that current conditions are unlikely to improve significantly in the near term.
North: Demand is expected to pick up only after the second week of October, according to sources. Until then trade will remain muted, with buyers largely waiting for fresh price cues from mills. Galvanised plain (GP) will continue to see some movement, while pre-painted galvanised iron (PPGI) will remain largely stagnant.
West: Market conditions remain poor, with participants noting that demand is unlikely to recover before the end of the month. GP is witnessing very limited offtake, and the colour-coated segment is almost entirely inactive. Market participants expect trading to pick up only once buyers get more clarity on mill list prices.
South: Activity continues to be lacklustre, though some participants indicated that a slight improvement in demand may be seen after the second week of October. GP sales are likely to remain modest, while PPGI movement is expected to stay minimal. Overall, sentiment remains cautious, with buyers are adopting a wait-and-watch approach.
Ample inventories of around 30-35 days across regions are also expected to keep prices largely range-bound, with no significant changes anticipated until mills announce their updated price lists.
Outlook
Demand is likely to stay sluggish in the coming weeks, with buyers are holding back and waiting for clarity on prices. Limited movement is expected across both standard and colour-coated products, while inventories will keep prices largely stable. Any noticeable improvement in activity may only occur after mid-October when fresh demand emerges.
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