Indian local cold rolled coil (CRC) trade price maintained during the past week amid thin trading conditions and negative sentiments of rising prices and falling sales in key user industries of automobile and consumer durable, SteelOrbis learned from trade and industry circles.
Indian CRC trade price was stable at INR 85,800/mt ($1130/mt) ex-Mumbai and unchanged at INR 86,700/mt ($$1142/mt) ex-Chennai in the south.
“Demand outlook remains very bearish from all user segments leading to sustained low level of restocking by market intermediaries,” a Mumbai based distributor said.
“Automobile industry is facing multiple headwinds of rising fuel price, high cost imported components and prolonged declines in passenger car sales. Hence demand for raw material is remain low and bookings will be very cautious. Consumer durable manufacturers are also aggressively increasing prices to offset raw material cost inflation and seeing declining sales as a result. So we will continue to see high CRC price combined with slow movement of stocks,” he said.
According to sources, industry estimates that average inventories with standalone re-rolling mills were up at around 45-50 day production equivalent compared to 30-35 day production equivalent in February-March as buyers in long term supply contracts were continuing to defer deliveries.
However, higher inventories were not impacting prices as mills were not in position to push discounted sales as cost of production was rising almost in weekly basis, the sources said.
Exchange rate: $1= INR 75.90