Local Indian cold rolled coil (CRC) tradable prices have inched up during the past week with steel mills officially indicating imminent base price revisions, but trading volumes have remained muted at very low levels, with key industries forecasting dismal April sales and mounting uncertainties going forward, SteelOrbis learned from trade and industry circles on Monday, April 19.
Sources said that tradable CRC prices are being quoted in the range of INR 64,000-66,000/mt ($853-880/mt) ex-Mumbai, against base prices of steel mills at INR 63,500-65,000/mt ($847-867/mt) ex-works. Last week, they were at the same level.
The sources said that supply chains of auto majors in northern and western India are already showing signs of disruptions owing to night curfews and lockdowns in the different regions, and these are expected to be aggravated further as the government gets more aggressive in controlling the spiraling pandemic and as key end-use industries including consumer goods either lower or defer fresh bookings, anticipating negative growth in sales in the first quarter of the current fiscal year.
At least two traders have confirmed that, despite the rise in overall tradable prices, they have resorted to concluding sales at a discount of two to three percent on the current quoted price in the market in order to clear inventories before more restrictions on goods and people come into force across the western state of Maharashtra.
The traders said that, while prices have remained at higher levels solely because of producers officially announcing their intention to raise prices in the current month, any such move would be “crazy” because all bullish future forecast of demand can become unstuck by the uncertainties resulting from the rising pandemic and the loss of consumer spending across the market.
$1 = INR 75.00