Local Indian cold rolled coil (CRC) prices showed little material change over the past week amid the ongoing muted trading environment and bearish sentiments over the revival of demand in key user industries like automotive, SteelOrbis learned from trade and industry circles on Monday, November 1.
Sources said that local traded CRC prices have remained unchanged at INR75,600-76,600/mt ($1,009-1,022/mt) ex-Mumbai, with some deals heard at INR 100-200/mt ($1.30-2.60/mt) lower ex-Chennai in the southern regional market.
“Contrary to other flat product segments, the CRC market is lacking any drivers and buyers are generally preferring to wait for a definite price trend to emerge,” a steel sector analyst at a Mumbai-based financial advisory firm said.
“The shortage of imported components faced by automobile manufacturers looks likely to extend well into 2022. This precludes any possibility of manufacturers’ ability to increase vehicle output in the medium term. This is the single biggest contributor to sluggish CRC trading activity,” he said.
According to an official with a private steel mill, the price differential between HRC and CRC has narrowed to levels not more than INR 3,000-4,000/mt ($40-43/mt) following rapid gains in HRC prices and given the sluggish CRC market, and producers rejigging their product portfolios by lowering re-rolling mill capacity and increasing HRC sales volumes in the local market.
$1= INR 74.90