- Supply tightness drives sharp price surge
- Mills push hikes amid rising costs
Indian coated flat steel prices recorded a notable w-o-w increase, with GP prices reaching a four-year high. The uptrend is primarily attributed to tightening supply conditions, driven by material shortages across key coated segments.
Producers have implemented price hikes in the range of INR 1,500-2,000/t ($16-21/t)for coated products, reflecting firm cost-push pressures. Market participants highlighted that constrained gas availability has impacted production at select mills, further limiting spot availability. In parallel, elevated transportation costs and increased input costs-amid ongoing geopolitical tensions-have exerted additional upward pressure on overall production economics.
Demand conditions in the coated segment remained relatively resilient compared to other flat steel products such as HRC and CRC, which continued to witness subdued activity. The combination of tighter supply and steady demand has supported the recent price trajectory.
Market feedback indicates that mills are maintaining a firm pricing stance, with trade expectations pointing towards a potential continuation of the upward trend in the near term, contingent on the persistence of supply-side constraints and cost pressures.
Price Update
Benchmark assessment for GP coil (Exy-Mumbai, India; 0.8mm / CTL, 120 GSM, IS 277) has been assessed at INR 76,800/t ($816/t), up by INR 3,100/t ($33/t) w-o-w, reflecting a sharp rise amid tight availability and firm mill offers.
PPGI (Exy-Mumbai, India; 0.5mm / CTL, 90 GSM, IS 14246) has been assessed at INR 81,700/t ($868/t), up by INR 3,000/t ($32/t) w-o-w, supported by improved demand traction and continued pricing discipline from mills.
Galvalume/BGL (Exy-Mumbai, India; 0.5mm / CTL, 1220mm, AZ150) has been assessed at INR 86,000/t ($914/t), up by INR 2,000/t ($21/t) w-o-w, with the uptrend underpinned by persistent supply tightness and elevated input cost pressures.
Market Update
Demand in the coated flat steel segment remained largely need-based during the assessment period, with procurement activity aligned to immediate consumption requirements. Despite this, mills continued to implement price increases, supported by elevated production costs and higher logistics expenses.
Market fundamentals indicated a relatively tight demand-supply balance. While underlying demand remained stable, supply-side constraints-particularly in select grades-restricted spot availability, lending support to prevailing price levels.
Regionally, the western and northern markets reported steady enquiry levels and transactional volumes, indicating stable demand conditions. Overall, the coated segment continues to exhibit comparatively better resilience than other flat steel products, underpinned by constrained supply and sustained consumption.
Market feedback suggests that mills are likely to announce further price increases in April, with indications of hikes in the range of INR 1,500-2,000/t, reflecting ongoing cost pressures. Additionally, participants highlighted that the prevailing propane gas shortage could have downstream implications, particularly for the auto sector, as limited availability of intermediate products may impact supply chains in the near term.
Raw material prices
India’s zinc ingot (99.995%) prices declined sharply by INR 14,600/t w-o-w to INR 3,17,000/t ex-Delhi as of 24 March, compared with INR 3,31,600/t in the previous week, reflecting weak spot demand and cautious buying sentiment in the domestic market. The downtrend follows a price cut by Hindustan Zinc Limited, which reduced its offers by INR 11,300/t to INR 3,21,000/t ex-Chanderiya, further weighing on market sentiment.
Meanwhile, LME three-month zinc futures declined by $108/t w-o-w to $3,057/t, indicating weaker global cues and limited external support.
BigMint’s benchmark assessment (bi-weekly) for HRC (IS2062, Gr E250, 2.5-8 mm/CTL) prices increased by INR 1,000/t ($11/t) w-o-w to INR 57,500/t ($612/t) on 24 March against INR 56,500/t ($601/t) on 17 March.
CRC (IS513, Gr O, 0.9 mm/CTL) prices increased to INR 65,000/t ($692/t) as assessed on 24 March 2026, up by INR 2,200/t ($23/t) w-o-w against INR 62,800/t ($668/t) on 17 March. These prices are ex-Mumbai for the distributor-to-dealer segment and exclude 18% GST.
Outlook
Near-term sentiment remains bullish, supported by persistent supply tightness and elevated cost pressures. Mills are expected to implement further price hikes in April, reinforcing the upward trajectory. While demand remains largely need-based, constrained availability and firm mill pricing are likely to push prices higher in the near term, with limited downside risk.
Leave a Reply