Local Indian cold rolled traded price (CRC) remained stable during the past week as faster stock movements from mills to users have been sustained, but increases in traded prices for some coils of lower thicknesses have been reported amid supply issues, SteelOrbis learned from trade and industry circles on Monday, February 21.
Indian traded prices of benchmark 0.9 mm CRC have been maintained at INR 70,400/mt ($942/mt) ex-Mumbai and have also been stable at INR 70,000/mt ($937/mt) ex-Chennai in the south.
However, sources said that trade prices for CRC of thinner gauges, 0.35-0.32 mm, are up, with the premium over benchmark grades rising by 15-20 percent on reports that at least two cold rolling mills of integrated steel producers have reduced capacity utilization levels, facing operational issues, causing the market to expect some tightening of supplies of thinner flat products.
“Demand from key industries is improving but not fast enough. Data show that automobile sales are improving on month-on-month basis in single digits, but are still in the negative zone year on year. Hence, demand growth will remain muted as consumers will not be aggressive in fresh bookings from mills,” a Mumbai-based dealer said.
“Barring short-term issues of thinner CRC grades, overall price movement will remain range-bound. With hot rolled coil (HRC) sales volumes moving fast in both domestic and overseas markets, mills will ensure stability in CRC prices,” he said.
$1 = INR 74.70
