Local Indian cold rolled coil (CRC) prices have remained under pressure amid reports that several auto manufacturers have re-negotiated long-term supply contracts deferring off-take volumes, having reduced planned production during the festive months ahead, that could lead to an increase in the material available in the market, SteelOrbis has learned.
Sources said that traded price for 0.9mm benchmark CRC was down to INR 73,000-74,000/mt ($993-1006/mt) ex-Mumbai, compared to INR 74,500-75,000/mt ($1,013- 1,020/mt) ex-Mumbai a week ago.
Higher grade thinner gauge (0.2-0.35mm) CRC prices have slumped by INR 2,000/mt ($27/mt) to around INR 76,000-78,000/mt ($1,034-1,061/mt) ex-Mumbai, the sources said.
“Most auto manufacturers have announced cutbacks in September-October production by 30-60 percent, while others have declared “no production days” during these months owing to the shortage of imported microchips. These companies have therefore renegotiated long-term supply contracts with rolling mills deferring off-take. This would mean more volumes available in the market, putting supply side-pressures on prices,” sources at ArcelorMittal Nippon Steel Limited (AMNS) said.
“Demand in other key sectors like farm equipment manufacturing has also been delayed by extended monsoon rains across the northern and eastern regions, and these manufacturing units are also deferring CRC bookings,” the sources said.
$1=INR 73.50
