India: Coated flat steel prices ease amid muted market activity

• Ample inventories keep market participants cautious
• Prices to remain on downward trajectory through Oct

The Indian coated flat steel market remained on a downward trend this week as mills reduced list prices amid subdued demand. Galvanised plain (GP) coil prices declined further, while pre-painted galvanised iron (PPGI) remained largely stable after recent corrections.

Market activity was muted, with limited buying interest at the trade level. Mills announced price cuts for October, clearing earlier uncertainty over price direction. However, sentiment remained weak, and participants expect the sluggish trend to continue through the month.

As per the latest weekly assessment on 09 October, GP coils (0.8 mm/CTL, 120 gsm, IS277) were at INR 61,100/t ($688/t) exy-Mumbai, down by INR 400/t w-o-w, with offers in the range of INR 60,500-61,500/t ($681-693/t).

Meanwhile, PPGI (0.5 mm/CTL, 90 gsm, IS14246) was assessed at INR 71,100/t ($801/t) exy-Mumbai, stable w-o-w, with offers ranging between INR 70,500-71,500/t ($794-805/t). Prices are exclusive of 18% GST. (USD 1 = INR 88.7876; INR 1 = USD 0.0112628)

Market update

The coated flat steel market remained extremely slow across regions this week, with limited trading activity and weak sentiment prevailing. Market participants highlighted that overall demand remained muted, with little near-term improvement expected.

West: Market conditions were particularly sluggish, with almost no activity in the GP and PPGI segments. Demand outlook remains bleak, with any meaningful recovery expected only from November. Prices are also under pressure and may see further declines in the coming days.

North: Buying activity remains stalled, with demand expected to return only after the festive period. Until then, trading is likely to stay limited as buyers remain cautious.

South: The market continued to witness weak demand, with no major signs of recovery in the near term. Both GP and colour-coated (PPGI) sales remained minimal amid low end-user inquiries.

Ample inventories and subdued trade sentiment are expected to keep prices on a downward trajectory through October.

Outlook

The coated flat steel market is likely to remain subdued in the near term, with weak demand and ample inventories. Western markets may see further price pressure, while buying in the north and south is expected to pick up only following the festivals. Overall, prices are expected to trade in a soft range, with limited offtake and cautious sentiment prevailing.