Prices for Indian coated steel increased slightly this week due to better trade prices and strong cost support. GP coil prices increased by ₹700 per tonne ($985) to ₹67,500/t ex-Mumbai. PPGI prices also increased by ₹700/t ex-Mumbai to ₹85,800/t. This increase in price is due to the rise of the price of galvanised steel as a result of increased zinc prices on both the domestic and Ohio markets, driving up the price of new material for galvanisers. Furthermore, the price of flat steel continues to rise with the continued strength of HR and CRC; thus, flat mill prices will remain high, despite some uneven demand in different regions across India.

Outlook:

The short-term outlook for market sentiment appears to be cautiously optimistic. There have been recent improvements in trade inquiries in both the north and south, combined with tight material supplies, which should provide opportunities for selective purchase restocking. Even though buyers will remain price sensitive, if there are anticipated mill price increases around the beginning of February, it could result in buyers making early purchases to provide additional support for coated steel prices.