Local Indian cold rolled coil (CRC) prices have hit an all-time peak after rising sharply by INR 1,000-1,500/mt ($14-20/mt) during the past week to INR 53,300-54,000/mt ($718-729/mt) amid a further aggravation of the tight supply for hot rolled coil (HRC), low inventories at re-rolling mills, and sustained bookings by key user industries led by auto manufacturers, sources told SteelOrbis on Monday, November 23.
The sources said that inventories at producers had fallen by an average of 20-30 percent since early November and that standalone re-rolling mills have been facing cuts in supplies from integrated steel producers, which has pushed up prices across regional markets.
Preliminary reports from automobile manufacturers indicated a rebound in festival sales, exceeding industry expectations, and all-round large-volume bookings have triggered market anticipation of base price hikes.
At least two traders confirmed that two western India-based re-rolling mills with supply contracts with South Korean passenger car makers have been charging a premium of INR 1,000/mt ($14/mt) on average for early January deliveries owing to low inventories and low supplies of HRC from integrated steel mills.
Advance estimates from the auto industry indicate that November sales will outstrip the 18 percent sales growth month on month achieved in October and manufacturers have been sustaining high-volume bookings with integrated steel mills for their CRC requirements.
$1 = INR 74.20