Local Indian cold rolled coil (CRC) prices have remained under pressure from weak global cues and end-users deferring new bookings in anticipation of further declines in December, forcing traded prices to retreat, SteelOrbis has learned from trade and industry circles.
The traded benchmark 0.9 mm CRC price has lost INR 1,000/mt ($13/mt) to INR 74,400-75,400/mt ($993-1,006/mt) ex-Mumbai.
According to the sources, the lower-than-expected increase in output from automobile plants, and the deferment of bookings and deliveries by end-users have resulted in thin market activity and buyers were waiting for producers to offer higher rebates at a time of announcing December base price revisions in the coming week.
“Buying sentiment is very low across user segments in anticipation of further declines in December as the Indian flat steel market falls in line with the global weakness. Indian local market cannot remain an outlier of high prices in the midst of the global downtrend as seen for short periods in previous months,” a source at ArcelorMittal Nippon Steel Limited (AMNS) said.
“A major disappointment has been passenger vehicle manufacturers reporting their worst-ever festival sales in October. This will prompt most manufacturers to slow down on their plans to increase plant output and hence raw material restocking. In any case, the falling market has prompted most buyers to wait for a new bottom to emerge,” the official said.
$1 = INR 74.90