Local Indian cold rolled coil (CRC) prices have defied the overall bearish conditions in the flat product market to record gains against the backdrop of reports of fresh bookings by some large industrial users and restocking of modest volumes by trade channels. However, consolidation at higher levels has been largely discounted given the weak demand fundamentals.
Sources said that benchmark 0.9 mm CRC trade prices have gained INR 900/mt ($11/mt) to INR 63,400/mt ($766/mt) ex-Mumbai and are up INR 500/mt ($6/mt) to INR 60,850/mt ($735/mt) ex-Chennai in the south. They said that southern and western region-based industrial users have reported large bulk bookings, with domestic integrated mills, providing much-needed support and reversing the prolonged downtrend. However, market participants continue to remain in doubt over whether the gains will be sustained and whether the market could consolidate at higher levels.
“Yes, the gain over the past week is a positive. Are we confident of the future? We don’t think so. Largely because the fundamentals of demand remain weak and the threat of cheap imports continues,” a Mumbai-based distributor said.
“For the market to consolidate, the gains must be sustained over at least consecutive weeks. We are not certain they will. At best, the recent gains will enable mills to defer any base price adjustments,” he said.
$1 = INR 82.80