Local Indian cold rolled coil (CRC) prices have remained stable amid the slowdown noticed in import trade bulk bookings from end-user industries and trade channels. However, some increase is expected by mills by the end of this month.
Sources said that benchmark 0.9 mm CRC prices are stable at INR 59,100/mt ($715/mt) ex-Mumbai and are unchanged at INR 58,000/mt ($702/mt) ex-Chennai in the south. Neither trade channels nor any large users have reported any fresh import bookings over the past week, which has improved sentiments over reduced import competition for local producers, although several market participants described this situation as “temporary”. Standalone re-rolling mills have also reported new bulk bookings by the industrial packaging sector in southern India and by north India-based automobile manufacturers.
At least two sources in trade circles said that they have heard from mill officials that large producers are considering base price increases in the range of INR 1,000/mt ($12/mt) before the end of the current month, prompting restocking by trade channels.
According to an official at a private mill, in view of the relatively soft prices of hot rolled coil (HRC), integrated large mills have been diverting excess inventories of the latter to value-added products of rolling mills to improve the share of higher-margin products in the total product portfolios. He added that the move has been prompted by a trend over the past two months which saw HRC prices falling by 10 percent while CRC trade price losses were comparatively lower at five percent during June.
$1 = INR 82.60