Local Indian cold rolled coil (CRC) prices have risen by INR 500/mt ($7/mt) week on week to INR 40,000/mt ($533/mt) ex-works as integrated steel mills have increased base prices supported by higher booking volumes from key user industries, SteelOrbis has been informed on Monday, July 20.
Market sources pointed out that, while the “pain” in key user segments like consumer durables and automobiles has persisted, some automobile manufacturers are seeing a positive demand revival in non-urban markets and this is prompting them to reactivate additional production lines and conclude fresh CRC supply contracts.
Picking their cue from the sustained bookings received since early July, Indian integrated steel mills are pushing through a base price revision, the sources said.
However, at least two traders confirmed that, while integrated steel mills are seen to be increasing prices, standalone re-rolling mills are continuing to maintain prices, which are at least INR 500/mt ($7/mt) lower as latter reportedly are still carrying large inventories.
According to an official at a private steel producer, integrated steel mills have better pricing power as they are able to dynamically manage the supply side by lowering production from rolling mills and instead focus on pushing higher hot rolled coil (HRC) sales, particularly large volumes to overseas markets, which in turn is helping higher realizations from limited production and sales of CRC.
$1 = INR 75.10