Local Indian cold rolled coil (CRC) prices have moved up in the past week, with integrated steel mills commencing base price hikes and the market expected to absorb the higher prices amid strong restocking by key industries like the automotive sector which has reported strong July sales and with the festive season demand surge ahead, SteelOrbis has learned from trade and industry circles on Monday, August 2.
Sources said that producers led by ArcelorMittal Nippon Steel (AMNS) have started announcing hikes in CRC base prices of around INR 2,000/mt ($26/mt) to INR 87,000-88,000/mt ($1,173-1,186/mt) ex-works.
According to sources, standalone re-rolling mills have very limited volumes for commercial sales, having locked up most of their production through long-term supply contracts at higher prices and this would enable integrated steel mills to push through the latest price increase in the market.
Also, most automobile companies have reported strong July sales, recording high-double digit growth in sales and, with the festive season demand surge ahead, companies have been more aggressive in re-stocking raw materials to support increased the capacity utilization levels of their assembly lines, the sources said.
It was pointed out that most passenger car makers have already announced price increases at retail level and hence have factored in higher raw material costs, which in turn would support CRC bookings in higher volumes.
$1 = INR 74.20