Local Indian cold rolled coil (CRC) base prices have been maintained by producers, but the tradable price inclusive of premiums on large-volume bookings has continued its uptrend in view of tight supplies and the larger number of bookings from key user industries, SteelOrbis learned on Monday, November 16.
Market sources and traders said that, while base prices have remained unchanged and strong at INR 52,300-52,500/mt ($701-703/mt) ex-works, tradable prices in the northern and southern markets have continued on an uptrend, rising to INR 54,000-54,500/mt ($724-731/mt) ex-warehouse inclusive of premiums, compared to trades reported in the range of INR 53,000-53,500/mt ($710-717/mt) ex-warehouse in the earlier week.
“Standalone re-rolling mills specializing in CRC supplies to auto majors are very low on raw material inventories of hot rolled coil (HRC) in view of low availability in merchant trade. These mills are having to cut down on tonnages being booked by end-users and this has led to strengthening of premiums by sellers,” an official at a Maharashtra-based rolling mill said.
“There is a surge in raw material restocking by both consumer durables and auto manufacturers as festival month sales are very strong. The uptrend will continue as, with plants operating at optimal levels, the tight supplies will persist in the medium term providing further headroom for CRC prices to edge up,” he added.
At least two traders and an official with a western India-based flat steel producing integrated steel mill said that producers were looking at leveraging their pricing power in the midst of tight supplies and premiums to increase base CRC prices by around INR 1,000-1,500/mt ($13-20/mt) to factor in the current premiums into their pricing.
$1 = INR 74.60
