Local Indian cold rolled coil (CRC) prices have inched up as low inventories held by rerolling mills have continued to impact supplies, while key users like automobile manufacturers have increased volume bookings.
Sources said that benchmark 0.9mm CRC prices have edged up by INR 200/mt ($2/mt) to INR 62,000/mt ($747/mt) ex-Mumbai and are up INR 400/mt ($4/mt) to INR 62,650/mt($755/mt) ex-Chennai in the south.
They said that, while the trade price increase is apparently modest and has not fully reflected the tight supplies from re-rollers largely, because of festival holidays in some regions during the week and some large bulk buyers taking a pause to finalize second quarter financial books to meet mandatory reporting requirements and so holding back new bookings.
“While automobile manufacturers have continued to prepare for higher festival sales, the southern India-based specialized packaging material industry was reporting robust sales and is heard to be increasing raw material - CRC - offtake,” a Mumbai-based source told SteelOrbis.
“But there is a shortage of flat products available for cold re-rolling and low inventories will trigger the next round of price rises. Mills will increase base prices in October, but there is sufficient demand in industry for the market to absorb the hike,” he said.
$1 = INR 83.00
