Cold rolled coil (CRC) demand in India has dropped recently as a number of automotive companies have faced disruptions in supply of cars components from China due to the coronavirus.
According to market sources, hot rolled coil (HRC) prices in the Indian domestic market and from abroad have declined during the past week but this has failed to trigger any bookings among major re-rollers who anticipated a sharp fall in restocking of cold rolled coil (CRC), particularly from automobile manufacturers. Mills were offering discounts in the range of INR 450-550/mt ($6-8/mt) for HRC last week, while import offers have fallen by $5-25/mt depending on the supplier this week, as SteelOrbis reported earlier.
Sources said that Indian automobile manufacturers are facing supply chain disruptions in importing critical components from China and, with around 27 percent of total component demand met through imports from that country, local automobile manufacturers risk curtailing production volumes and thereby have lowered their CRC booking volumes.