Indian cold rolled coil (CRC) prices have showed divergent trends during the past week with integrated steel mills their maintaining price line, and standalone re-rolling mills hiking their prices having locked in significant volumes in long-term supply contracts with auto companies at higher prices, SteelOrbis learned from trade and industry circles on Monday, July 5.
Sources said that integrated steel mills have maintained base prices at INR 85,000-86,000/mt ($1,136-1,149/mt) ex-works and have still to take a decision on revising July base prices.
However, re-rolling mills are heard to have pushed up ready booking prices to around INR 90,000/mt ($1,203/mt) ex-Mumbai after having successfully booked high volumes in long-term supply contracts with auto companies, with a 10-15 percent hike over previous supply contracts, the sources said.
The sources stated that most automobile manufacturers have reached optimal plant utilization levels and are operating at pre-lockdown levels and, with a number of companies announcing price increases for passenger car deliveries in July-August, they were well placed to conclude fresh high-volumes bookings for raw materials, which are expected to offer healthy support for higher CRC prices.
Consumer durable manufacturers, particularly in southern India, are reporting strong sales from pent-up demand, and higher manufacturing levels have triggered CRC purchases and bookings, according to market intermediaries, are expected to gain momentum as durable producers build up inventories for the festival sales increase a few months ahead.
$1 = INR 74.80