Local Indian cold rolled coil (CRC) trade prices have remained stable amid low market activity, but the sustained discounted sales by standalone re-rolling mills have continued and the uncertain demand outlook from end-use industries of consumer durables and automobiles has prevailed in the market, SteelOrbis learned from trade and industry circles on Monday, August 29.
Indian benchmark 0.9 mm CRC trade prices have remained stable to INR 66,500/mt ($832/mt) ex-Mumbai and are marginally higher by INR 300/mt ($4/mt) to INR 66,800/mt ($836/mt) ex-Chennai in the south.
However, the sources said that standalone re-rolling mills are reported to continue concluding bookings at discounts of around INR 4,000/mt ($50/mt), passing on the benefits of using lower-price imported hot rolled coil (HRC), much of it ex-Russia, as raw material for its rolling mills.
“All eyes are now on festival sales growth levels in October-November as it will be the key determinant for raw material bookings. There is a lot of divergence in outlook. Strong sales growth achieved by consumer durables and passenger cars in June-July indicate accelerated growth of festival sales. But high inflation and rising bank interest rates and hence consumer finance costs is a negative. Hence, the still very cautious sentiment is in the market,” a steel sector analyst with a Mumbai-based financial advisory firm said.
At least two leading trade firm said that mills could lower base prices in September by around INR 1,500/mt ($18/mt) to achieve higher sales volumes and compete with lower-priced outputs of standalone rolling mills.
$1 = INR 79.90
