Trade market prices of coated flat steel coil remained rangebound this week, as market participants are waiting for July price announcements. Lacklustre demand in both domestic and overseas markets and the decline in prices of substrate products such as HRC and CRC weighed on market sentiments.
SteelMint’s weekly assessment of GP (0.5mm, 120gsm) stood at INR 70,000-71,000/t, down by $300/t. On the other hand, pre-painted galvanised iron (PPGI) (0.5mm, 90gsm) prices continued to hover around INR 78,000-79,000/t. Prices are on exy-Mumbai basis, excluding GST @ 18%.
HDGI export offers remain stable: Mills have been finding it difficult to conclude deals in the overseas markets amidst an appreciating dollar and other barriers in global trade. These factors are keeping prices under pressure. Export offers for hot-dipped galvanised iron (HDGI) coils (0.50mm, 900-1,250mm) from India stood unchanged at $1,050/t FOB west coast.
Decline in HRC, CRC prices: The decline in prices of HRC and CRC in both the domestic and overseas markets weighed on buying interest for value-added coated products. HRC prices have dropped to the levels last seen in early-April 2021.
Need-based procurement: Demand in the domestic market continues to remain lacklustre. Buyers are procuring only to fulfill urgent requirements. Moreover, with the continual decline in prices over the past couple of months, distributors and sellers are also not willing to keep inventories. This has led to a slowdown in trade market activity lately.
Furthermore, market participants are waiting for the steel producers to announce their prices for July sales, which is expected in the next couple of days.
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