Local Indian cold rolled coil (CRC) prices have remained stable during the past week, while some steel mills have already started to increase base prices. CRC trades in India were negligible as key user industries like automotive have been halting fresh bookings and market intermediaries have also been staying away from restocking, SteelOrbis learned from trade and industry circles on Monday, May 3.
Sources said that tradable local CRC prices have been heard in the range of INR 63,500-65,000/mt ($858-878/mt) ex-Mumbai, with integrated steel mills maintaining base prices at around the same level, while AMNS has announced an increase of INR 4,500/mt ($61/mt).
The sources said that most of the major India-based automobile companies have either shut down some of their plants across the northern and southern regions or have been cutting back production at their assembly lines, and hence are largely out of the market as regards restocking raw materials.
It has been pointed out that most passenger car makers have sufficient inventories of finished products and, with dealers in the regions worst affected by the pandemic, like Maharashtra in the west and Haryana in the north, closing down, despatches from plants to retailers have stopped.
“Some disruptions in the market are inevitable as more regions go into stricter lockdowns. But we do not see much impact on prices. For one, there is going to be some supply-side tightness from the slight fall in the production of steel mills, which will support prices. At the same time, strong exports of hot rolled coil (HRC) will prevent risks of high inventory build-ups,” an official at JSW Steel Limited said.
“Key user industries like automobile and consumer durables might see some negative impact on May sales. We expected volumes in the market to stay on the lower side as everyone is being cautious. We will assess our prices as the market conditions change,” he added.
As local CRC demand is lower, Indian mills have been focused on export sales of both HRC and CRC. Though the quota for ex-India HRC in the EU has already finished, some sales of CRC have been reported at $1,350/mt CFR. In addition, higher HRC deal prices have been heard to Egypt from India - at $1,050/mt CFR.
$1 = INR 74.00