- Restocking eases with onset of monsoon
- Buyers resist current price levels
India’s coated flat steel market remained broadly steady this week, though underlying weakness persists amid slowing demand and intensifying monsoon conditions. Demand for colour-coated or pre-painted galvanised iron (PPGI) coils—which had seen a brief boost in the preceding couple of weeks—has started tapering off, as end-buyers are now done with their procurements.
The latest weekly assessment, on 26 June, showed GP (0.8 mm/CTL, 120 gsm, IS277) coil prices at INR 64,500/t (754 $/t) exy-Mumbai, down INR 200/t (2 $/t) w-o-w, with offers hovering between INR 64,000–65,000/t (748–759 $/t). In contrast, southern India witnessed a steeper fall of INR 1,400/t from the previous week, driven by subdued trading activity and muted buying interest.
Meanwhile, PPGI (0.5 mm/CTL, 90 gsm, IS14246) was assessed at INR 73,900/t (864 $/t) exy-Mumbai, with offers in the range of INR 73,500–74,500/t (860–871 $/t). These prices exclude GST at 18% (USD 1 = INR 85.4939; INR 1 = USD 0.01169673).
Market updates
Prices under pressure as bearish sentiment deepens
The coated flat steel market is grappling with mounting pressure amid weakening demand and increasing buyer resistance to current price levels. With seasonal roofing requirements largely met ahead of the monsoon, overall trading activity has slowed significantly.
“Demand for galvanised plain (GP) coils has declined sharply, and even PPGI is facing pushback despite earlier interest in roofing sheets,” noted a distributor from western India. Mills and sellers are finding it increasingly difficult to hold prices as support from end-user segments remains absent.
Restocking slow down amid seasonal disruptions
Adding to the subdued outlook, restocking across trade channels has eased considerably. “There’s little movement from downstream sectors, and distributors are refraining from replenishing inventories due to seasonal issues like high humidity, which can damage coils,” said a distributor in northern India.
Inventories, which were tight earlier, are now offering little support to prices. The supply-side disruptions seen over the last three months are likely to ease, and availability improve. However, without corresponding demand, market fundamentals are likely to remain fragile in the near term.
Outlook
Coated flat steel prices are expected to remain under pressure in the near term amid weak end-user demand and limited restocking by distributors. With monsoon-related disruptions deepening and no visible support from core consuming sectors, buying interest is likely to stay muted. Market sentiment remains bearish, and further price corrections cannot be ruled out unless mills intervene with price support or demand sees a revival.
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