Local Indian cold rolled coil (CRC) continued to consolidate at higher levels for the fifth consecutive week, gaining INR 500/mt ($7/mt) to INR 42,500/mt ($567/mt) ex-works on fresh bookings to auto manufacturing, where confidence over revival in sales showed further improvements, SteelOrbis was informed on Monday, August 17.
According to market sources, integrated steel mills are expected to increase CRC base price to keep it aligned with further base price hikes in HRC prices expected over the next couple of weeks and this will be supported by steady improvement in mood among domestic automobile industry, which reportedly has planned launches of at least 15 new or upgraded passenger car models in the current month, indicating higher output from their existing assembly lines.
Sources said that the market expects another INR 1,000/mt ($14/mt) increase in base CRC prices in August triggering significant rise in bookings for October deliveries by most of the major domestic passenger car producers.
At least two officials at integrated steel mills said that higher CRC prices will also be supported by the fact the producers will continue to keep captive conversion in their rolling mills limited in view of higher volume of HRC sales both in domestic and overseas markets.
According to sources, CRC inventories at all integrated steel mills will not be higher than prior to the pandemic in February-March.
$1= INR 74.90
