Indian coated steel prices flat on weak trade

India's coated steel prices remained flat this week on sluggish consumer demand because of monsoon rains and liquidity woes.

Offers for galvanised sheet of 0.8mm thickness with 90 grams/square meter (gsm) of zinc coating were at 48,500 rupees/t ($680/t) ex-works. Offers were at about Rs52,000/t ex-works in the first week of June.

A major southern India-based mill offered thinner material of 0.5mm thickness and a zinc coating of 120gsm at Rs52,500/t ex-works.

Offers for colour- and aluminium-coated galvalume sheet with 0.5mm thickness were heard at Rs65,000/t ex-works.

Most major mills are willing to offer discounts on colour-coated material, although traders are holding on to current prices.

Monsoon rains have restricted transport and construction activities in the country, resulting in lower demand for roofing sheets. Severe floods in the western state of Maharashtra and southern states of Karnataka and Kerala have further disrupted trade activities.

Demand from the automobile sector for galvanised and colour-coated panels continued to slide as automobile production and demand fell. Sales of passenger vehicles fell by 31pc on the year to 200,790 in July. Commercial vehicle sales also declined by 25.7pc to 56,866 units in the same comparison.

The liquidity crunch, caused by debt-ridden banks refusing to fund individual or corporate loans, has resulted in lower disposable incomes for purchases of automobiles and consumer durables, said a Mumbai-based mill official.