- Major mills raised coated steel offers further
- Demand improved across major regional markets
India’s coated flat steel market witnessed a INR 1,500-2,000/t increase in prices during the week ended 03 September 2026, with major domestic steel mills announcing price hikes of around INR 2,000-2,500/t across coated products. The increase was primarily driven by a sharp rise in raw material costs, which significantly elevated input costs for mills and prompted them to revise offers upward.
While mill offers have strengthened substantially, market demand remains relatively cautious, with buyers largely following a need-based purchasing approach and limiting purchases to immediate requirements. Consequently, the pass-through of the higher mill prices into the spot market remains gradual.
Overall, coated flat steel prices have moved sharply higher, supported by steep increases in raw material costs and mill-led price revisions. Further price movement will depend on the sustainability of input-cost pressures and a corresponding improvement in underlying demand.
Price Update:
BigMint’s benchmark assessment for Mumbai GP coil (0.8 mm/CTL, 120 GSM, IS 277) increased by INR 1,700/t w-o-w to INR 79,700/t ex-Mumbai.
Meanwhile, Mumbai PPGI (0.5 mm/CTL, 90 GSM, IS 14246) was assessed at INR 87,000/t ex-Mumbai, increasing by INR 800/t w-o-w.
Mumbai BGL (0.5 mm/CTL, 1220 mm, AZ150) was assessed at INR 90,000/t ex-Mumbai, remaining stable w-o-w.
Raw Material Prices Update
Zinc:
HZL raised its benchmark SHG zinc ingot price by INR 5,500/t to INR 434,400/t on 31 August, while LME zinc continued to trade above four-year highs amid supply concerns and tight availability outside China. The firm global market and higher HZL benchmark supported domestic zinc prices. However, rising LME inventories and cautious, need-based buying from downstream consumers could limit the pace of further domestic price gains.
HRC:
BigMint’s bi-weekly benchmark assessment for HRC (IS 2062, Grade E250, 2.5–8 mm/CTL) increased by INR 2,600/t w-o-w to INR 62,000/t ex-Mumbai as of 1 September 2026, from INR 59,400/t in the previous week. The sharp increase was supported by firmer mill offers, higher input costs and stronger mill-led price revisions, while improving market sentiment provided additional support. However, cautious buying and limited spot-market urgency among downstream consumers may constrain further near-term gains.
CRC:
Similarly, BigMint’s benchmark assessment for CRC (IS 513, Grade O, 0.9 mm/CTL) increased by INR 4,000/t w-o-w to INR 70,500/t ex-Mumbai, from INR 66,500/t in the previous week, exclusive of 18% GST. The sharp rise was driven by higher mill offers, elevated input costs and the broader upward movement in flat steel prices, with selective downstream demand providing some support. Nevertheless, buyers remained cautious and largely focused on immediate requirements, which could limit stronger price gains despite firm mill pricing.
Market updates
The Indian coated flat steel market witnessed a positive shift in sentiment during the assessment period, with trading activity improving across regions. GP prices moved higher, supported by firm mill offers, improved demand and constrained domestic availability. Market participants indicated that only around 70% of normal material availability is reaching the market, limiting spot-market supplies and providing support to prices.
A distributor participant noted that “mills are cutting supplies in the domestic market,” highlighting the tighter availability in the market. The combination of restricted supply and improved buying interest has strengthened market confidence, with buyers increasingly making purchases against regular requirements.
Market inventory levels are estimated at around 60–70%, indicating relatively lean stocks across the distribution chain. With inventories at moderate levels and supply remaining constrained, market participants expect replenishment demand to continue supporting prices.
Regionally, trading activity across the West, North and South markets improved, with enquiries and requirement-based transactions showing a positive trend. Buyers remained cautious but were more active compared with the previous assessment period
Outlook
The coated flat steel market is expected to remain firm with a positive bias in the near term, supported by elevated raw material costs, constrained domestic availability and improving demand across regions. Market indications suggest that major domestic mills may announce a further price increase of around INR 750-1,000/t, which could provide additional upward momentum to trade-market prices.
With distributor inventories remaining relatively lean and supply availability constrained, buyers may continue to replenish stocks despite higher prices. However, cautious buying at elevated levels could moderate the pace of gains. Overall, prices are expected to remain firm, with further upside likely if mills implement the indicated hikes and demand continues to improve.
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