Category Archives: Pre-Painted Galvanised Coil

Indian mills to hike coated steel list price up to INR 2,000/t ($27) for Nov

Indian steel mills are planning to increase color coated prices by INR 1,000-2,000/t in Nov, SteelMint learned from market sources. A steep hike in hot rolled since past few months  can be attributed for hike in coated steel prices. However, market participants from trade segment shared that further hike in prices seems difficult to be absorbed on subdued demand.

After an increase, color coated (PPGL) prices will be around at INR 76,600/t (exy-Mumbai). Last month the price was around INR 74,600/t (exy- Mumbai). Prices do not include GST @18%.

Reasons driving steep hike in color coated prices:
1.Spurt in roofing demand –
Color-coated sheet is highly preferred for roofing. Roofers are mostly back to pre-Covid capacity. A combination of pent-up demand in the summer, combined with government stimulation packages, and people working from home wanting home-upgrade resulted to improved buying of color coated coils/sheets

2.Steep hike in hot-rolled coil prices- Major steel mills are continuously raising HRC prices on higher input costs and short supply. On an average basis, HRC (2.5-8mm, IS2062 ) stood at INR 43,000-43,500/t (exy-Mumbai) which was around INR 38,750/t at the beginning of Aug’20.In the last three months, HRC prices went up by almost INR 4500/t.

3.Demand recovery from white goods sector –There was continued demand for white goods during the second quarter, in great contrast to the slump in demand during the April-June quarter, which was caused by the prolonged lockdown. The sale of washing machines and refrigerators saw better demand from Aug and Sept months

However, on the other hand, traders are of opinion that a price hike is not workable due to slow demand in the market. Currently, PPGI prices (0.5mm 90GSM ) is hovering around INR 63,000-63,500/t (exy-Mumbai). Prices do not include GST @18%.

Market share of color coated coils in India
India produced 9.8 mn t of galvanised and color coated steel in FY’20. Out of this share of color coated steel/coils was 2.3 mn t. JSW remained the largest producer at 0.65 mn t followed by AMNS at 0.37 mn t. JSW Steel has got the approval of National Company Law Tribunal (NCLT) to acquire the bankrupt steel company Asian Colour Coated Ispat, as per recent reports. This happened after more than a year the latter’s lenders approved the resolution plan. JSW Steel has offered INR 1,550 cr for a 1 mn t steel plant.

 

Russia: NLMK Lipetsk begins upgradation of pre-painting line

Russian steelmaker NLMK Lipetsk has started overhauling of its 195,000 t pa pre-painting line. This upgrade will enable the company to increase strip quality, double the output of premium pre-painted steel grades, and reduce production costs. NLMK contracted Danieli for this project. The construction and installation is expected to be started in Mar’21 and will take approximately 2 months.

 

“Future of Capital Goods in India” – Webinar Highlights

India’s Capital Goods manufacturing industry serves as the strong base for its engagement across sectors such as engineering, construction, infrastructure, and consumer goods. This sector is a robust, multi-level, diversified segment of the Indian industry environment, playing a critical role in driving growth, creating jobs, and boosting exports and thus develop a technologically advanced and globally competitive steel industry to cater to the expansion planned in National Steel Policy 2017.

Indian Steel Association (ISA), an apex steel industry body that represents all the major public and private sector steel enterprises of India, organized a webinar titled “Subcontinental Steel: Future of Capital Goods” on 21st October, 2020, supported by the Ministry of Steel, Government of India. Prominent leaders from the steel and capital goods industry deliberated on issues which will shape the future of capital goods.

Key Highlights:

  • As per the National Steel Policy, India aims to grow to 300 Mn t mark of steel capacity by 2030. There is a noticeable gap of 160 Mn t pa as the current crude steel capacity is 142 Mn t pa This indicates the need for setting up additional 16 steel plants of 10 Mn t capacity or 32 plants of 5 Mn t capacity in order to bridge this gap to satisfy the needs of the capital goods industry.
  • India’s per capita steel consumption is currently 74 kg of finished steel, much lower than global and geographical averages – 30% of the world average, indicating potential for rapid future growth. The target set by the National Steel Policy 2017 is to move to a per capita consumption of 160 kg of steel by 2030.
  • Steel demand in capital goods sector increased by 6% over FY15 – FY19. Capital Goods are considered as a strategic sector and essential for the development of domestic manufacturing capabilities from a national self-reliance and security perspective.
  • The capital goods sector has immense potential to grow in India as India embarks on its journey to build capacity mark by 2030. Domestic players need to access global capability, partner with large domestic players and frequently dialogue with the Govt. to identify tax incentives and regulatory hurdles for sustained rapid growth.
  • India’s cost of capital goods has come down substantially from 3.4-3.5%. Technology providers face challenges pertaining to the environment, raw-material (quality & quantity), transportation logistics and digital technology.
  • Major challenges faced by the domestic capital goods industry – limited technological capability and expertise, operational in-efficiencies leading to higher prices, and limited capacity for domestic consumption.
  • The domestic industry meets only 60% of national demand despite idle capacity in multiple subsectors. Imports in capital goods industry dominate exports. Overall, capital goods exports in India stood at 21.3(USD B) and imports stood at 44.5(USD B) in 2019.
  • Abundance potential and opportunities in capital goods sector across various segments are as follows:
    ~ Cold storage is expected to grow at CAGR 16.09% by 2020
    ~ Investment of INR 1.4 Tn by 2025 for second largest roads and highway network
    ~ Expected to reach USD 23 Bn by 2024 in aerospace and defence sector
  • Market-oriented reforms such as “Power for All” along with plans to add 93 GW by 2022 will generate huge demand for power transmission and distribution (T&D) equipment. Transmission and Distribution (T&D) equipment segment is targeted to reach a size of $ 75 Bn by 2022
  • BHEL set up a ‘Make in India (MII) Business Development Group’ vertical to identify manufacturing opportunities in India and work with global OEMs for ‘Make in India, Make for the World’.
  • The support of the Government is needed to invest in making the technology and designs for steel heavy equipment open source, thus allowing capability to be developed in India, thereby boosting the performance of the capital goods industry
 

India: JSW launches new colour-coated steel product

JSW Steel has announced the nationwide roll-out of JSW Radiance colour-coated steel at a time when the leading steel-maker sees great opportunity for anti-microbial coated steel products. The growing health and wellness consciousness of consumers is driving the company to come up with special products. Radiance can be customized with different paint systems, informed Jayant Acharya, Head of Marketing, Commercial & Corporate Strategy at JSW.

 

Indian mills lift colour coated steel prices by INR 1,500-2,000/t ($21-27)

India’s major mills have raised colour coated and galvanized steel prices by around INR 1,500-2,000/t in the domestic market for Sept ’20 deliveries. After the increase, effective prices for PPGI (90 GSM,0.5 mm) are hovering around INR 61,500/t (ex-Mumbai). Prices do not include GST @18%.

Meanwhile, SteelMint’s assessment for PPGI (0.5 mm 90 gsm) trade reference price stands at INR 61,500-62,000/t (ex-Mumbai) and INR 62,000-63,000/t (ex-Delhi).The prices mentioned above are basic, and GST extra @18% is applicable.

The primary reason behind the price surge was the tight supply of HRC in downstream industries. Also, better demand and optimistic sentiments in the colour coated market kept the price largely supported.

“PPGI prices continue to increase even in the rainy season on lower availability of material at the stockiest end,” shared a trader based in Mumbai.

Along with this, galvanized plain coil prices also reported an increase for Sep deliveries. Current trade reference prices for galvanized plain coil (0.7- 0.8 mm, 120 GSM) is at INR 49,500-50,000/MT (ex-Mumbai).The prices mentioned above are basic, and GST extra @18% is applicable. After the rainy season ends, the demand for colour coated and galvanized products is expected to increase which may result in an uptrend in prices in coming months.

 

Malaysia imposes anti-dumping duty on galvalume imports from China, Korea, Vietnam

Malaysian government has imposed anti-dumping duty on import of non-alloy products plated/coated with aluminium and zinc (galvalume) from China, South Korea and Vietnam, effective for 120 days from 14 Aug ’20, SteelMint learned from a SEAISI report. This step has been taken to protect local steel industry from damages caused by imports from these countries.

 

India: Color coated steel prices stable after sharp hike in early Jun’20

Domestic PPGI (pre-painted galvanized iron) prices remained unchanged on a weekly basis after witnessing a sharp hike in early Jun’20.

The current PPGI (0.5 mm 90 gsm) trade reference price stands at INR 56,250-56,500/t (ex-Mumbai) and INR 56,500-57500/t (ex-Delhi).The prices mentioned above are basic, and GST extra @18% is applicable.

Towards the beginning of Jun’20, domestic PPGI prices in India witnessed a sharp hike of around INR 1,000/t w-o-w. The primary reason behind price surge was increased seasonal demand for coated steel which generally increases before the monsoons for roofing requirements, shared trade sources.

However, now the demand has turned slow with the arrival of monsoons, sources added.

Along with this, galvanized plain coil prices also remained stable on a weekly basis.

Current trade reference prices for galvanized plain coil (0.7- 0.8 mm, 120 GSM) is at INR 47,000-48,000/MT (ex-Mumbai), INR 50,000-50,500/MT (ex-Delhi), 51,000-52,000/MT (ex-Chennai), and 50,000-50,500 (ex-Hyderabad).The prices mentioned above are basic, and GST extra @18% is applicable.

 

JFE Steel JV Starts Operations of Color-coating Line in Myanmar

JFE Steel Corporation along with Meranti Steel Pte. Ltd, JFE Shoji Trade Corporation, Marubeni-Itochu Steel Inc. (MISI) and Hanwa Co., Ltd. announced today that a color-coating line has begun operating at the company’s joint-venture hot-dip galvanizing and color-coating plant for flat-steel construction materials in Myanmar.

The plant is operated by JFE Meranti Myanmar Co. Ltd., which was established by the aforesaid parties. The overall hot-dip galvanizing plant, which is still undergoing construction, will enter production in mid-CY20.

Economic development has progressed dramatically since Myanmar’s democratization in CY11, resulting in rapid growth in demand for flat-steel construction products for roofs, walls and structural components. Most such materials are currently imported, but high-quality products produced locally with short lead times and supported with technical service will be in increasing demand as foreign companies continue to enter the country and build manufacturing plants.

Demand will also be supported by rising local preferences for higher-end products. JFE Meranti Myanmar looks forward to meeting this need and contributing to local economic development by supplying basic materials for infrastructure, said the company release.

 

Indian Color Coated Prices Soften on Slower Demand

This week, the domestic PPGI (Pre-painted Galvanized Iron) prices went down by INR 250-500/MT in the key markets amid sluggishness in buying activities in the domestic market. Traders and end-users have postponed their purchases in anticipation of further downside in prices.

Meanwhile, the piling up of inventories among traders and stockists pulled down color coated prices this week, which resulted in bearishness in the market.

Hence, the current PPGI trade reference price stands at INR 56,500-57,000/MT (ex-Mumbai) and INR 57,500-58,500/MT (ex-Delhi). The prices mentioned above are basic, and GST extra @18% is applicable.

A few market sources shared, “Traders are refraining from making any fresh bookings amid a lull in the downstream demand.”

Along with this, Galvanized Plain Coil prices also witness a decline in the domestic market amid slack demand.

Current trade reference prices for Galvanized plain coil (0.7- 0.8 mm, 120 GSM) is at INR 50,000-51,000/MT (ex-Mumbai), INR 50,500-51,500/MT (ex-Delhi), 52,000-52,250/MT (ex-Chennai), and 51,500-52,000 (ex-Hyderabad). The prices mentioned above are basic, and GST extra @18% is applicable.

 

India: Domestic PPGI Prices Up on Decent Trades

This week domestic PPGI (Pre-painted Galvanized Iron) witnessed an increase of INR 500-750/MT W-o-W as the buyers are actively restocking the material in anticipation of a further increase in prices in the upcoming month.

Also, a slight improvement in demand from the automobile sector kept the prices supported in the domestic market.

Current PPGI trade reference prices stand at INR 55,500-56,500/MT (ex-Mumbai) and INR 56,000-58,500/MT (ex-Delhi). The prices mentioned above are basic, and GST extra @18% is applicable.

Meanwhile, galvanized coil prices surged by INR 1,000-1,500/MT on a weekly premise.

Current trade reference prices for Galvanized plain coil (0.7- 0.8 mm, 120 GSM) is at INR 49,250-49,500/MT (ex-Mumbai), INR 49,000-49,500/MT (ex-Delhi), 50,500-51,500/MT (ex-Chennai), and 50,000-51,000 (ex-Hyderabad). The prices mentioned above are basic, and GST extra @18% is applicable.

A trader based in the Delhi region commented that “Buying activities have remained decent. However, the arrival of material is slow owing to tight supply in the market.”

Also, steel mills shared that PPGI prices may increase sharply in the month of Feb’20 over strong market sentiments and increased trade inquiries in the domestic market.