- Cautious buying continues, trade sentiment weak
- Mills keep offers unchanged amid soft demand
Indian coated flat steel prices declined this week, reversing gains seen in the previous week. Prices of galvanised plain (GP), pre-painted galvanised iron (PPGI), and galvalume coils fell amid sluggish buying. Demand remains weak, with market participants noting that signs of recovery are yet to be seen. Overall sentiment was cautious as buyers continued to adopt a wait-and-watch approach.
As per the latest assessment on 20 November, GP coils (0.8 mm/CTL, 120 gsm, IS277) were at INR 60,000/t ($676/t) exy-Mumbai, remaining stable w-o-w. Market offers were largely unchanged, hovering in the range of INR 59,500-60,500/t ($670-682/t).
Galvalume (0.5 mm/CTL, 1220 mm, AZ150, IS15961) was assessed at INR 76,000/t ($857/t) exy-Mumbai, remaining stable w-o-w. Offers were largely unchanged, heard in the range of INR 75,500-76,500/t ($851-862/t).
Meanwhile, PPGI (0.5 mm/CTL, 90 gsm, IS14246) was assessed at INR 68,500/t ($772/t) exy-Mumbai, remaining stable w-o-w, with offers heard in the range of INR 68,000-70,000/t ($766-789/t). Prices are exclusive of 18% GST. (USD 1 = INR 0.0112708; INR 1 = 88.7273 USD)
Market update
Coated steel market sentiment remained weak this week, with demand staying muted across regions. Participants noted that buyers are restricting purchases to immediate requirements, resulting in low trade volumes. Liquidity issues and limited end-user enquiries continue to keep overall sentiment cautious.
West:
The western region reported steady movement in GP, with buyers showing some interest; however, colour-coated (PPGI) demand remained significantly weak. Traders highlighted that enquiries for colour material were limited mainly due to tightening liquidity situation in the market. Many participants noted that overall trade momentum is likely to stay slow unless liquidity improves or end-user demand picks up.
North:
Market sentiment in the north remained sluggish, with slow demand and limited transactions. According to a market participant, most buyers are staying cautious and preferring to operate within the current price range. The general view is that prices will likely remain in this band in the coming days, as no immediate signs of demand recovery are visible.
South:
The southern market continued to witness lower demand. Traders indicated that sentiment has softened further, and many buyers are waiting for clearer direction from the mills. Participants also mentioned that there are expectations of potential price discounts from mills in the near term, which is prompting buyers to delay bookings in anticipation of better deals.
Outlook
Coated steel prices are expected to stay range-bound in the coming days as demand remains subdued across regions. GP may continue to see steady inquiries, but PPGI and galvalume segments are likely to face persistent pressure due to weak end-user buying and liquidity constraints. Market participants do not expect any immediate recovery in market conditions and trading is expected to remain need-based until sentiment improves or mills adjust offers to stimulate bookings.
Leave a Reply