Indian local cold rolled coil (CRC) prices softened marginally in a market lacking direction and producers and trade channels maintaining divergent outlook on demand situation amid thin trading and sustained import competition.
Sources said that benchmark 0.9 mm CRC trade price was down about INR 100/mt ($1.2/mt) at INR 59,600/mt ($727/mt) ex-Mumbai and down INR 100/mt ($1.2/mt) at INR 58,750/mt ($716/mt) ex-Chennai in the south.
They said that discounts on landed price of imports to current local trade prices continued to range between 10-12 percent even as at least one southern India based large passenger car manufacturer was heard to concluded an ex-South Korea booking for 25,000 mt, continuing the trend of auto companies increasingly depending on import sourcing and reducing spot purchases from standalone rerollers.
“We are hearing that major consuming sectors are relying increasingly on imports to meet their incremental demand over and above their existing long term supply contract with rerollers. This has led to a sharp fall in offtake from local distribution channels,” a Mumbai based distributor said.
“The market sentiment is extremely mixed. Though exact data is still not available, there are all indications that inbound cheaper imports in June, until now has exceeded inward volumes in May. This coupled with higher production from mills and lower overseas sales will continue to put pressures on price going forward.
$1= INR 82.00
