Indian cold rolled coil (CRC) prices have remained stable despite the increase in base prices by some mills, indicating a bearish outlook for sales growth and raw material restocking by key user industries like specialized metal packaging and automotive, SteelOrbis learned from trade and industry circles on Monday, January 2.
Indian benchmark 0.9mm CRC trade prices have remained unchanged at INR 59,200/mt ($716/mt) ex-Mumbai and remained at INR 57,750/mt ($698/mt) ex-Chennai in the south.
The sources pointed out that, while Steel Authority of India Limited (SAIL) has taken the lead in increasing January prices and other mills are set to follow suit over the next few days, CRC trade price did not react, increasing the trade to base price discount level.
“Mills are compelled to hike prices, reacting to the input cost rise. But inflationary pressures and resultant price increases of key consuming industries like steel pipes, packaging and auto grade steel have lowered sales growth forecasts and hence they are cautious in concluding new bookings,” a Mumbai-based distributor said.
“Trade channels are fully stocked up, re-rolling mills are pushing spot sales at 5-10 percent discounts over the current trade price in order to clear their inventories. As more producers increase base prices, risks to trading will increase too,” he said.
$1 = INR 82.70
