Indian PPGI Offers Likely to Surge in October

Following anticipated price hike in HRC & CRC, SteelMint learned from market participants that Indian major mills are likely to increase domestic PPGI prices by around INR 1000-1500/MT (USD 14-20) in the month of October.Also  domestic demand from automotive sector is expected to remain strong in coming months.Meanwhile costlier imports amid Indian currency depreciation is another reason for hike in domestic PPGI prices in near term.

However this week domestic PPGI prices remain unchanged. Offers from major manufacturers are as follows: JSW Steel is offering PPGI (0.5mm,90 GSM) is around INR 70,000/MT (ex-Mumbai, GST extra). Meanwhile Essar Steel is offering PPGI (0.5mm,90 GSM) at INR 65,000/MT (ex-Mumbai, GST extra). However market participants highlighted that in Mumbai, trade reference prices are around INR 64,000-66,000/MT (ex-Mumbai, GST extra).

In Delhi,a major manufacturer is offering PPGI prices around INR 65,000-65,500/MT (ex-Delhi, GST extra).

Few trade sources reported,” This week domestic PPGI prices in traders market witnessed dull sentiments amid liquidity issue along with festive holidays.Thus material movement remained slow over lesser bookings in traders market. Also there are anticipations for price hike for which quantum will be clear next week”.

Galvanized Plain Coil prices move down marginally in traders market- This week GP (Galvanized plain coil) move down marginally by INR 500/MT in traders market.

Currently trade reference prices for Galvanized plain coil (0.8 mm, 120 GSM) is at INR 55,000-58,500/MT (ex-Mumbai),INR 54,500/MT (ex-Delhi), INR 55,500-58,300/MT (ex-Hyderabad)and INR 56,000/MT (ex-Chennai).The prices mentioned above are basic prices excluding GST@18%.

However Indian manufacturers are expected to increase GP prices in line with HRC prices in the month of October.

India’s imports of galvanized and coated steel fall in Aug’18 – As per customs data maintained with SteelMint India imported 116,717 MT in Aug against 135,979 MT in previous month.

During Jan-Aug’18 India imported 0.9 MnT galvanised and coated steel out of which major suppliers were South Korea (39% share), Japan (20% share) and China (11%).