Local Indian cold rolled coil (CRC) prices have remained stable amid thin trading conditions and the uncertain demand outlook in key user industries, SteelOrbis learned from trade and industry circles on Monday, March 18.
Sources said that the benchmark 0.9 mm CRC price is stable at INR 61,200/mt ($739/mt) ex-Mumbai and unchanged at INR 62,250/mt ($ 752/mt) ex-Chennai in the south. The demand outlook in key user industries has become cloudier with the announcement of the national elections during the April-June period. A section of the market considers that political campaigns and high election spending will involve a rise in vehicle buying by political parties and candidates for election touring and will be beneficial for commercial and large passenger car sales, hence boosting raw material purchases by manufacturers. However, another section of the market hold the view that political uncertainties during the election months will keep overall industrial activity at an even lower level, driving down bookings by trade and industrial users.
“With so many varied dynamics, economic and non-economic, at play, we expect prices to at best remain range-bound in the coming weeks with a definite negative bias. Most will prefer to defer business decisions and the market will remain lackluster,“ a Mumbai-based distributor said.
“Steel mills are seeing some softening of input prices. But we do not think that mills will pass on the benefits by lowering prices and instead will focus on improving margins. This will be a headwind to any possible revival of market conditions. Industrials are not in the mood to spend. This will sustain until there is a new government in place,” he said.
$1 = INR 82.80
