- Sales remain limited amid cautious buyer sentiment
- Strong recovery expected only after festive season
The Indian coated flat steel market remained subdued this week, particularly in the galvanised plain (GP) segment. Benchmark prices in the trade-level segment showed divergent trends, with GP remaining stable and pre-painted galvanised iron (PPGI) recording a sharp decline.
Market participants noted ongoing challenges with liquidity and delayed payments, which affected trading sentiment. While GP continued to see some movement, overall activity remained moderate. The colour-coated segment (PPGI) experienced slower activity, though it was not entirely stagnant. With demand relatively steady and inventories sufficient across trade channels, prices faced mild pressure, showing a cautious and mixed trend.
The latest weekly assessment on 18 September placed GP coils (0.8 mm/CTL, 120 gsm, IS277) at INR 61,900/tonne (t) ($697/t) exy-Mumbai, unchanged w-o-w, with offers in the range of INR 61,500-62,500/t ($693-704/t).
Meanwhile, PPGI (0.5 mm/CTL, 90 gsm, IS14246) was assessed at INR 72,000/t ($811/t) exy-Mumbai, down by INR 1,100/t w-o-w, with offers ranging between INR 71,500-72,500/t ($805-817/t). Prices are exclusive of 18% GST. (USD 1 = INR 88.7826; INR 1 = USD 0.0112640)
Market update
Market sentiment in India’s coated flat steel segment remained subdued this week. Despite adequate inventory across regions, sales were very limited, as the market remained dull and demand was almost stagnant. Buyers continued to stay cautious amid ongoing financial stress. In the near term, conditions are unlikely to improve significantly, with only a slight uptick possible ahead of Diwali, while a stronger recovery is not expected until after the festive season.
North: Demand remained subdued, with limited buying activity and few inquiries. Prices faced slight pressure, and participants expect some inquiries to emerge once the rains subside, potentially providing marginal support to the market.
West: The market remained extremely slow, with liquidity constraints and delays in payments impacting trade. While GP witnessed some offtake, the colour-coated segment witnessed almost no movement.
South: Market sentiment remained mixed this week. While some participants informed BigMint that there was a slight improvement in sales, others pointed to weak activity. Prices in the region edged up, but overall sentiment stayed cautious and uneven.
Outlook
The coated flat steel market is likely to remain under pressure in the near term due to persistent weak demand and cautious buyer sentiment. Liquidity constraints and uncertain market conditions may limit significant buying activity. A clear demand revival is not expected until broader economic factors improve and market confidence strengthens.
Leave a Reply