The local Indian cold rolled coil (CRC) market has joined the overall rally in the steel market, with prices surging amid reports of a demand revival in infrastructure and consumer durable manufacturing and some improvement in the mood in the automobile sector, SteelOrbis learned from trade and industry circles on Monday, January 23.
Indian benchmark 0.9mm CRC trade prices have spurted a robust INR 1,500/mt ($18/mt) to INR 63,500/mt ($783/mt) ex-Mumbai and are up INR 2,000/mt ($25/mt) to INR 61,550/mt ($759/mt) ex-Chennai in the south, in reaction to some re-rolling mills reporting cutting booking volumes to have stocks for immediate deliveries.
“Despite moderate bookings by the automobile industry, the CRC market is being driven by the strong demand revival for construction grade CRC, and the large bookings received by integrated mills from seamless pipe producers and household appliances,” a Mumbai-based distributor said.
“After lagging behind other flat product categories, CRC prices are catching up. Re-rolling mills have been successful in reducing inventories through discounted sales until early January. Now most rolling mills have started increasing prices to improve margins,” he said.
According to an official at an integrated mill, “We are seeing a demand shift in the market from the automobile industry to infrastructure-led construction, specialized packaging, pipes and tubes in the oil and gas sectors.”
“While demand from varied sectors is improving, input for re-rolling is getting tighter as mills are pushing higher hot rolled coil (HRC) sales both in local and overseas markets, leading to the pace of the CRC price rise catching up with other flat products. We assess another two to five percent increase in price over the next couple of weeks,” he said.
$1 = INR 81.10