Local Indian cold rolled coil (CRC) trade prices have lost ground, reacting to reports of rising discounted sales by re-rolling mills and a slowdown in bookings from key user industries like automotive, contrary to earlier expectations, SteelOrbis learned from trade and industry circles on Monday, August 15.
Indian trade prices for benchmark 0.9 mm CRC have lost INR 1,000/mt ($13/mt) to INR 66,500/mt ($833/mt) ex-Mumbai and are down INR 1,500/mt ($19/mt) to INR 66,500/mt ($833/mt) ex-Chennai in the south.
Trade circles pointed out that re-rolling mills were discounting spot sales by an average of INR 3,000/mt ($39/mt) to automobile majors in south India. Speculations in the market are that standalone rolling mills have been importing ex-Russia hot rolled coil as inputs at discounts to local base price of integrated mills, and therefore have been able to offer discounted sales while maintaining margins from CRC.
“The expected uptick in bookings by automobile companies as they prepare for the festival months of September-November is still to emerge. There are uncertainties over the traditional festive season surge as all automobile manufactures have increased prices and, coupled together with rising inflation, this could to some extent dampen the usual growth in sales this year,” a Mumbai-based distributor said.
“However, at the same time, mills are reducing output from their captive rolling mills, thereby checking the pace of the fall in price,” he said.
$1 = INR 79.80