- Mills hold off on price hikes due to poor acceptance
- Liquidity issues hinder buying activity in west India
The Indian coated flat steel market opened this week on a muted note, with demand remaining sluggish and inventories staying ample across trade channels. Prices continued to face downward pressure, with galvanised plain (GP) slipping by INR 500/tonne (t) and PPGI declining by INR 400/t w-o-w. According to market participants, the ongoing softness stems from limited buying interest, particularly from downstream sectors. With no immediate signs of revival, the market is expected to remain under pressure through the week, although this outlook remains speculative amid uncertain demand recovery.
The latest weekly assessment on 18 September showed GP coil (0.8 mm/CTL, 120 gsm, IS277) prices at INR 61,900/tonne (t) ($702/t) exy-Mumbai, declining by INR 500/t ($6/t) w-o-w, with offers ranging between INR 61,500-62,500/t ($697-709/t).
Meanwhile, PPGI (0.5 mm/CTL, 90 gsm, IS14246) was assessed at INR 73,100/t ($829/t) exy-Mumbai, with offers hovering between INR 72,500-73,500/t ($822-833/t). Prices are exclusive of 18% GST. (USD 1 = INR 88.1864) (INR 1 = USD 0.0113396)
Market update
Market sentiment in India’s coated flat steel segment remained weak this week, with very low sales and minimal demand across regions. Despite sufficient inventory, trading volumes were limited, as buyers stayed cautious. Mills held off on price hikes due to poor acceptance. Some slight demand improvement might be seen just before Diwali, but a stronger recovery is unlikely until after the festive season.
North
Demand remained low with limited buying activity, and inquiries were few as market participants stayed cautious. The ongoing monsoon further dampened movement, but there was optimism that demand could improve once the rains subside. Additionally, procurement ahead of the Diwali festival is expected to provide some momentum to the market.
West
The weak demand in the region was primarily driven by liquidity constraints rather than weather conditions. Despite mills and plants reaching out actively to smaller customers, buying interest remained muted. However, there is hope that liquidity issues may ease, leading to some pick-up in demand starting from next week.
South
Demand continued to be very sluggish, with no major changes in market dynamics. Market participants remained uncertain, and there was no clear indication of a demand revival in the near term. The overall sentiment was cautious, with buyers only procuring based on immediate needs.
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.
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