The downtrend in local Indian cold rolled coil (CRC) prices continued on reports of inventory build-up at rerolling mills, which pushed discounted sales amid fall in bookings from end user industries, SteelOrbis learned from trade and industry circle on Monday, December 26.
Indian benchmark 0.9 mm CRC trade price lost INR 200/mt ($2/mt) at INR 59,200/mt ($715/mt) ex-Mumbai and down INR 500/mt ($6/mt) at INR 57,750/mt ($697/mt) ex-Chennai in the south.
According to the sources, rerolling mills concluded long term supply contract for January-March quarter at lower price and volumes were saddled with higher inventories for spot sales. So mills were reporting discounts ranging around INR 500/mt ($6/mt) to control stock carrying costs.
“Most end user industries like passenger car markets, consumer durables, specialized steel packaging and pipe manufacturers have all announced price increase from January which in turn will impact sales growth leading to cautious raw material stocking,” a Mumbai based distributor said.
“The bearish mood in the market is reflected in trade prices moving down even though market expects mills to increase base price in January by at least INR 1,000/mt ($12/mt). Trade channels have almost halted fresh bookings as most distributors are fully stocked,” he said.
$1=INR 82.80