Local Indian cold rolled coil (CRC) base prices have been kept stable by integrated steel mills during the past week, but the market has strengthened with the withdrawal of discounts by sellers in anticipation of base price hikes in March, SteelOrbis has learned from trade and industry circles on Monday, February 22.
The sources said that, while integrated steel mills have not yet given out any indication of higher base prices for March, the combination of a withdrawal of discounts seen early in the month in the range of INR 1,000-2,000/mt ($14-28/mt) and key buyers like automobile manufacturers announcing increases in passenger car prices, and also the receding of threats of lower-priced CRC offers from standalone re-rolling mills based on cheaper imported ex-China hot rolled coil (HRC) would offer local producers headroom to increase base prices next month.
Sources said that domestic CRC base prices have been kept unchanged at INR 60,000-60,500/mt ($826-833/mt) ex-works, but tradeable prices have increased to the extent of the discounts which have been withdrawn.
“Local CRC prices will remain range-bound at least until the end of the current fiscal year. Base price increases by producers will be limited since automobile manufacturers will face slower sales towards the close of the fiscal year and manufacturers will limit raw material restocking,” a Mumbai-based trading firm said.
“The real impact will have to be assessed on how the limited volume availability of cheaper ex-China HRC plays out in the local steel market,” he added.
