- Prices stable; trade activity subdued
- Sentiment cautious but improving gradually
Indian coated flat steel prices remained largely firm with a slight downward bias in the week ended 12 February amid sluggish demand. Trading activity stayed muted as buyers adopted a cautious stance. However, market participants expect procurement to pick up in the coming days as the summer season sets in, which may support an improvement in demand and prices.
Trading activity showed limited improvement, with market participants reporting marginally better enquiry levels. While some major mills have increased prices, absorption in the market has remained slow, keeping procurement largely need-based across regions. Overall market momentum stayed cautious, as participants awaited clearer demand support despite expectations of continued price backing from mills.
As per the latest assessment, galvanised plain (GP) coil prices remained stable at INR 68,900/t ($760/t) ex-Mumbai w-o-w. Market offers were largely reported in the range of INR 68,500-69,500/t ($756-767/t), supported by firm mill pricing despite subdued buying interest.
Pre-painted galvanised iron (PPGI) prices were assessed at INR 76,900/t ($848/t) ex-Mumbai, down marginally by INR 100/t ($1/t) w-o-w. Offers were mostly heard in the range of INR 76,500-77,500/t ($844-855/t), with price pressure persisting amid slow absorption, even as mill prices remained firm.
Meanwhile, galvalume (BGL) prices stood unchanged at INR 79,000/t ($878/t) ex-Mumbai. Market offers were reported in the range of INR 78,500-79,500/t ($866-877/t), supported by stable mill pricing, although demand conditions remained mixed across regions.
All prices are exclusive of 18% GST.
Market Updates:
West:
Demand in the western region remained slow, with limited buying activity reported during the week. While earlier concerns around material availability had emerged due to export orders, participants indicated that there is currently no material shortage in the domestic market. Overall demand remains weak, keeping trade volumes subdued.
North:
Demand in the northern region stayed firm, supported by moderate buying activity. Market participants noted that procurement is ongoing, driven by expectations that market sentiment could turn positive in the near term. Trading activity remained steady, with buyers continuing to purchase selectively.
South:
The southern market faced sluggish demand, with no major trading activity reported. Buying remained largely need-based, and participants highlighted material shortages in the region, which further restricted overall trade volumes.
Outlook:
Market sentiment in the coated flat steel segment remains cautious in the near term, as slow price absorption and muted buying continue to cap upside despite firm mill pricing. While current procurement is largely need-based, expectations of seasonal demand improvement, coupled with continued price support from major mills, could gradually improve buying interest. Any meaningful recovery in prices and trade volumes is likely to hinge on clearer demand visibility and improved downstream consumption, with sentiment expected to turn more positive once inventory movement gains momentum.
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