Local Indian cold rolled coil (CRC) prices have showed signs of increasing on slight improved bookings from key end use industries, but regional price disparities were seen to be widening, SteeOrbis learned.
The tradable price for 0.9 mm benchmark CRC has been heard in the range of INR 77,500-78,000/mt ($1,041-1,048/mt) ex-Mumbai, up by INR 1,000/mt ($13/mt) from a week ago.
However, prices in the regional market around Chennai in the south are significantly higher at INR 81,000-82,000/mt ($1,088-1,101/mt), which sources attributed to lower inventories in local distributors and higher bookings.
Price of thinner gauge (0.2-0.35mm), however, has maintained at the level of INR 86,000/mt ($1,155/mt) ex-Mumbai, the sources said.
“Despite challenges in global supply chains, Indian passenger car makers are readying for higher output for the expected spurt in festival sales ahead and this is resulting in slight improvements in raw material bookings. Even though such bookings are lower than expectations, CRC prices are reacting upwards as order flows are higher than a month earlier,” a Mumbai based distributor said.
“However, the medium term outlook is uncertain in midst of talks about third wave of pandemic emerging around October, which is generally seen during festival month. Hence, the mood is of cautiously optimistic and CRC price at best can be expected to move in a narrow range either direction,” he added.
$1= INR 74.44