Local Indian tradable cold rolled coil (CRC) prices have sought lower levels as premiums have been disappearing amid a combination of low bookings, the lockdown in the key manufacturing state of Maharashtra in the west, and lower production possibilities in the automobile industry from a shortage of microchip availability and price hikes for passenger cars, SteelOrbis learned from trade and industry circles on Monday, March 29.
The CRC tradable price has touched INR 58,500-59,000/mt ($807-814/mt) ex-Mumbai, similar to the base price of integrated steel mills, down from the ex-Mumbai traded price of INR 60,000/mt ($828/mt) a week ago.
Sources said that the region-wise lockdown announced across Maharashtra could impact sales of passenger cars and dispatches to dealers, and could become stricter, with more restrictions likely to be imposed across more states and this, coupled with a 5-10 percent increase in passenger car prices effective from April 1, has impacted sentiments and caused a sharp fall in fresh bookings.
Sources said that year-end considerations have also resulted in low bookings by end-users as key consuming industries like consumer durables and automobiles are in wait-and-watch mode to assess the demand situation and the government reaction to the new wave of the pandemic before making any commitments.
The sources said that buoyant expectations that the recovery in automobile sales would continue into the new fiscal year starting April 1 have not been considerably tempered by a new wave of the pandemic, though at the same time the forecast of double-digit monthly sales growth being sustained is being reassessed and most automobile majors are taking a fresh look at their raw material inventory plans.
$1 = INR 72.50