- GP coil prices surge on sharp rise in HRC, coking coal prices
- Buyers procure material now to avoid higher prices in Jan’26
Indian coated flat steel prices increased w-o-w on 24 December across galvanised plain coil (GP), pre-painted galvanised iron (PPGI), and bare galvalume (BGL). Market sentiment improved, supporting cautious, limited restocking activity. Market participants speculate that the current price uptrend is likely to sustain in the near term, potentially until mid-January, despite demand fundamentals remaining moderately subdued.
A steep rise in coking coal, up by $11/t to $238/t on 19 December and hot-rolled coils HRCs, up by 4% to INR 49,000/t on 26 December also supported higher coated flat steel prices. Additionally, buying improved slightly, as market participants believe that mills may raise prices in January. Buyers are procuring material now to avoid paying higher prices later in January.
As per the latest assessment on Wednesday, GP coils (0.8 mm/CTL, 120 gsm, IS 277) were assessed at INR 62,800/t ($699/t) exy-Mumbai, up by INR 2,000/t ($22/t) w-o-w, with offers being heard in the range of INR 62,000-63,500/t ($690-707/t). Demand and inquiries improved for GP coils much more than for galvalume and PPGI. Moreover, GP coil and HRC prices are more closely correlated, so an INR 1,900/t w-o-w uptick in HRC prices, exy-Mumbai, last Friday, on 19 December, translated into sharper gains in GP prices.
Galvalume (0.5 mm/CTL, 1220 mm, AZ150, IS 15961) was assessed at INR 75,000/t ($835/t) exy-Mumbai, up by INR 200/t ($2/t) w-o-w, with offers in the range of INR 74,500-75,500/t ($829-840/t).
Meanwhile, PPGI (0.5 mm/CTL, 90 gsm, IS 14246) was assessed at INR 69,700/t ($776/t) ex-Mumbai, up by INR 300/t ($3/t) w-o-w, with offers in the range of INR 69,500-70,500/t ($774-785/t). Prices are exclusive of 18% GST.
Market updates
North
Market participants described demand in the northern region as better than earlier but “still not great”. However, participants believe the recent price increases are likely to gain acceptance in the near term as the market improves.
West
Market sentiment in the western region turned relatively positive over the past few days, with a participant noting that “the market could move in an upward direction going forward”. However, actual demand growth is yet to fully materialise, with PPGI offtake slow, according to sources. However, another participant stated that trade activity has improved, and demand is present, though a clear uptick in volumes is still awaited.
South
Demand in the southern region remained sluggish, though market sentiment showed a slight improvement. Participants indicated that while inquiries are present, a stronger recovery in domestic demand is necessary for a sustained improvement in market conditions.
Outlook
The recent price increases have improved market sentiment, particularly in the west, but a broad-based pick-up in demand has not occurred yet. In the rest of the month, prices are expected to remain firm to slightly higher as mills attempt to sustain the hikes and buyers gradually accept revised levels.
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