Local Indian cold rolled coil trade prices have remained unchanged and did not react to two mills increasing base prices for the current month, indicating inventories on the higher side in trade channels and expected slower bookings from leading consumers like automobile manufacturing.
Sources said that benchmark 0.9 mm CRC prices have remained unchanged at INR 60,800/mt ($730/mt) ex-Mumbai and stable at INR 61,850/mt ($743/mt) ex-Chennai despite the fact that two large mills increased base prices by around INR 1,000/mt ($12/mt) for June deliveries.
According to sources, distributors have not been able to pass on higher prices to customers as off-take is slowing down since major consuming industries like automotive have reported a fall in sales growth for passenger cars and commercial vehicles.
“The very fact that not all large mills have increased base prices for June indicates producers’ fears of buyers’ resistance. Dealers are also not in a position to hike trade prices as most are carrying higher-than-average inventories,” a Mumbai-based trader said.
“With demand expected to turn more sluggish and the automobile industry expected to lower volumes, we are fearing that discounted sales will be inevitable to check rising inventories,” he said.
$1 = INR 83.20
