- GP prices drop on lacklustre buying
- PPGI prices gain on emerging demand signals
Trade-level coated flat steel prices showed a mixed trend this week. Galvanised plain coil (GP) steel prices dropped by around INR 100-600/t ($1-7/t) w-o-w on low buying in a few markets and cautious sentiment. The initial euphoria in the market after the safeguard recommendation and mills raising their list prices seems to have died down. Moreover, the list price hikes by mills have failed to find favour in the market for GP and substrate products.
Trade-level prices for pre-painted galvanised iron (PPGI) increased by INR 700-1,500/t ($8-18/t) w-o-w, backed by an increase in inquiries, supply constraints of some popular colours and emerging demand from pre-engineered buildings (PEB) segment. However, the cautious approach of buyers and willingness to negotiate for lower prices amid uncertainties in the market continued to restrict steeper price increases.
The latest weekly assessment, on 17 March 2025, shows galvanised plain (GP, 0.8 mm/CTL, 120 gsm, IS277) steel coil prices at INR 63,700/t ($/t) exy-Mumbai, with offers varying in the range of INR 63,000-64,500/t ($/t), lower by INR 100/t ($1/t) w-o-w. Similarly, pre-painted galvanised iron (PPGI, 0.5 mm/CTL, 90 gsm, IS14246) was assessed at INR 73,700/t ($/t) exy-Mumbai, with offers at INR 72,500-74,000/t ($/t). Prices are minus GST at 18% (USD 1 = INR 85.3896; INR 1 = USD 0.011711).
Market updates:
Buyers diverge on procurement: GP buyers have been cautious and are negotiating for lower prices. Meanwhile, demand for pre-painted variants showed signs of strengthening as the seasonally high demand period is approaching. “Buyers in the roofing, cladding and PEB segments showed improved interest in procuring, which led to an increase in inquiries,” a north India-based distributor said. However, the same cannot be said for GP products as buyers continue to engage with caution and are willing to pay prices close to the lower range, he added.
Looming supply constraints: One major private mill based out of Jamshedpur put up one of its blast furnaces for capital maintenance on 1 April, which might span over 1-2 months, as per some industry sources. The maintenance is taken for realignment and refractory brick replacements, which would result in a production loss further downstream. This is a major factors that has lent support to colour-coated steel prices. Also, the manufacturer’s facility at Khopoli, Maharashtra, has announced a 15-day maintenance run on 15 April, leading to production loss.
Moreover, there has been a buzz of some mills to announce a list price hike of around INR 750-1,000/t ($9-12/t) in mid-April; however, no confirmation has been received so far.
Outlook
Trade-level prices are most likely to show an uptrend in the near term. Growing demand from PEBs, white goods and automobile segments shall provide some rationale for mills to raise their list prices in June in a bid to raise their revenues from the business to customer (B2C) segment. But it shall be interesting to see by how much mills increase prices for next month amid the cautious sentiments prevailing among buyers and in the traders’ segment.
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