India: Coated steel prices under pressure amid slow bookings, weak demand

• Mills hikes face market resistance
  
  
• Inventory pressure weighs on sentiment
  
  

Indian coated flat steel prices declined by INR 300-900/t w-o-w as of 07 May 2026, amid continued sluggish demand conditions across the domestic market. Market activity remained weak during the week, with limited bookings and lower enquiry levels reported from key consuming regions. Buyers largely stayed on the sidelines, restricting fresh procurement to immediate requirements only.

Although some major mills announced price hikes of around INR 1,000/t during the week, the increase has not been fully absorbed by the market due to weak downstream demand and cautious sentiment among participants. Adequate material availability in the spot market and competitive offers from traders further kept pressure on prices, resulting in a softer overall market trend.

Price updates

Galvanised plain (GP) coil (exy-Mumbai, India; 0.8mm / CTL, 120 GSM, IS 277) was assessed at INR 78,200/t. Tradable offer ranges were heard at INR 77,500-79,000/t, reflecting cautious buying activity and continued weak market sentiment.

Pre-painted galvanised iron (PPGI) (exy-Mumbai, India; 0.5mm / CTL, 90 GSM, IS 14246) was assessed at INR 86,000/t. Market offers were reported in the range of INR 85,500-86,500/t amid subdued demand and slower bookings across key markets.

Galvalume/bare galvalume (BGL) (exy-Mumbai, India; 0.5mm / CTL, 1220mm, AZ150) was assessed at INR 89,200/t. Offers in the market were indicated in the range of INR 88,500-90,000/t, with trading activity remaining moderate during the week.

Overall, coated flat steel prices remained under pressure amid weak downstream demand, limited enquiries, and cautious market sentiment, although some mills attempted price hikes during the week.

Raw material prices

India's zinc ingot (99.995%) prices remained stable w-o-w at INR 353,000/t ex-Delhi on 5 May 2026, as subdued downstream demand continued to weigh on market activity despite recent producer price revisions. Market participants largely remained cautious, with procurement limited to immediate requirements amid weak consumption trends.

The domestic market continued to take cues from Hindustan Zinc Limited (HZL), which reduced its list prices by INR 600/t on 5 May to INR 357,900/t from INR 358,500/t on 4 May, reflecting cautious alignment with global market trends while attempting to maintain market sentiment.

On the substrate side, BigMint's benchmark assessment (bi-weekly) for HRC (IS2062, Gr E250, 2.5-8 mm/CTL) prices inched down by INR 200/t ($2/t) w-o-w to INR 57,700/t ($606/t) on 5 May, against INR 57,900/t ($608/t) on 28 April.

Similarly, CRC (IS513, Gr O, 0.9 mm/CTL) prices were assessed at INR 65,100/t ($684/t), down by INR 100/t ($1/t) w-o-w from INR 65,200/t ($685/t) in the previous assessment. Prices are assessed ex-Mumbai for the distributor-to-dealer segment and exclude 18% GST.

Market update

Market sentiment across the northern, western, and southern flat steel markets remained subdued during the week, with demand for HRC, CRC, GP, PPGI, and other coated steel products continuing to stay below normal levels. Market participants across major trading hubs reported limited enquiry generation and an absence of sizeable spot bookings, as buyers largely restricted procurement to immediate requirements. The recent softening trend in HRC, CRC, and upstream raw material prices further impacted buying sentiment, leading several customers to delay fresh purchases in anticipation of improved pricing opportunities.

Inventory levels across the flat steel supply chain were largely estimated at around 30-35 days, which kept replenishment activity limited and maintained pressure on spot prices. Although downstream consumption from roofing, fabrication, appliances, and engineering sectors remained stable to moderate, overall trading activity continued to remain slow across regions. Amid the prevailing market conditions, several industry participants indicated expectations of possible price support measures or supply-side discipline from primary mills by mid-May to support market stability and improve sentiment.

Outlook

The Indian coated flat steel market is expected to remain under pressure in the near term as weak buying sentiment, cautious procurement activity, and comfortable inventory levels continue to weigh on trade volumes. Despite attempts by primary mills to push prices higher, the market has yet to show sufficient demand support to absorb these increases, indicating limited pricing power at present.

Participants across the value chain are largely anticipating a further downward correction in prices over the coming weeks, particularly if enquiry levels and spot bookings fail to improve meaningfully. Softer substrate and raw material trends are also expected to keep buyers in a wait-and-watch mode, delaying large-scale restocking activity. However, any potential supply-side discipline or production adjustments from mills may help limit sharper price declines and provide some support to market sentiment later in May.