Indian coated flat steel prices increased slightly compared to the previous week. GP, PPGI, and BGL all had week-on-week increases. GP price was positioned at ₹60,800/t delivered to Mumbai, BGL was placed at ₹74,800/t, and PPGI was settled at ₹69,400/t; the margins achieved for these prices are marginal compared to prior weeks. A major contributor to these price increases was purely sentiment rather than anything based on fundamentals. The demand for GP and PPGI was moderate and primarily driven by the needs of each buyer. Some market participants indicated that they were being careful in their restocking efforts; meanwhile, the demand indications were inconsistent from region to region; the result was only limited volume conversions, despite continuing inquiries between buyers and sellers throughout many parts of the world.

Outlook:

The near-term outlook appears to be cautiously optimistic for the coated flat steel marketplace. There is no broad-based recovery in demand as of yet; however, market participants will have moderation (and likely) improvement by the end of December, assuming they see some clearance from market participants in the upcoming days. Moderate levels of activity in the trading arena (and selective purchases from buyers) are likely to remain steady for the time being. Additionally, there appears to be speculation surrounding a price increase by mills in January, which should support market confidence. Overall, demand recovery is expected to occur gradually, and prices should be stable to slightly firm in the short-term.