India's coated flat steel market continues to face considerable headwinds as price pressure from weak demand, high inventories, and seasonal holdups remains. The prices of GP were assessed at ₹62,400/t and PPGI at ₹73,500/t, which dropped by ₹700/t and ₹500/t, respectively, due to a lack of buying momentum from across regions compared to last week.

As per MetalBook Sources, the traders are still receiving inquiries, but there has been limited sourcing as buyers remain timid due to the monsoons, election uncertainties, and softness in global demand (mainly China).

Mills continue to struggle to maintain price stability, as reports indicate that some traders are offering discounts to move their stock and maintain liquidity. Even with some recent price corrections, volumes were still low, and sentiment has been poor. With the festive season approaching, we can assume that there will be a short lift in demand, a much-needed reprieve for the lethargic market.

Outlook:

In the near term, the coated steel market will remain challenging as demand is expected to remain low through the end of the monsoon season. A meaningful price rally will be dependent on the festive season bank buying and improvements in downstream consumption. If we see the festive-related demand develop as expected, prices may level off or even post a modest rally. To achieve sustained recovery, infrastructure activity needs to improve, political clarity should be apparent post-elections, and global cues need to be more bullish. Until all of these factors develop, the market will have a cautious and liquidity-driven demand structure.