Local Indian cold rolled coil (CRC) prices have suffered setbacks during the past week both in terms of prices and trading volumes as key user industries like consumer durables and automobiles considering plant closures owing to lockdowns and restrictions on movement of workers, SteelOrbis learned from trade and industry circles on Monday, April 26.
Sources said that CRC tradable prices have fallen to levels of INR 63,500-65,000/mt ($847-867/mt) ex-Mumbai, on a par with base prices of integrated steel mills, down from INR 64,000-66,000/mt ($853-880/mt) ex-Mumbai a week ago.
Prices are also seen to be receding with the market ruling out any immediate hike in base prices by integrated steel mills, as had been anticipated early this month.
The sources said that, though most automobile majors are officially maintaining sales targets for the April-June quarter, several plants are considering temporary closures, partially or fully, and hence have been out of the market for immediate raw material restocking.
Citing examples, the sources said that Panasonic India has announced the closure of one of its plants and the industry as a whole is forecasting 12-15 percent negative growth during the current fiscal year amid the impact of the second wave of the pandemic.
According to two Mumbai-based traders, while distributors are virtually out of the market and not willing to restock with business activity falling steadily, at least two western India-based mills are reported to be offering discounts in the range of two to three percent on base prices to keep pushing volumes in the market.
$1 = INR 75.00
