Indian local cold rolled coil (CRC) trade prices have remained stable over the past week, supported by reports of robust September sales growth in key user sectors like automobile and consumer durables and steady bookings by trade channels, SteelOrbis learned from trade and industry circles on Monday, October 10.
Indian 0.9 mm benchmark CRC trade prices have remained at INR 66,200/mt ($804/mt) ex-Mumbai and INR 65,800/mt ($799/mt) ex-Chennai in the south.
“The mood in the CRC market has been boosted by strong high double-digit sales growth by almost all automobile manufacturers and the latter are expected to step up raw material bookings. We are assessing the demand projections and will take a call on further revision of prices later in the month,” an official at a private mill said.
“Already there has been a steady drawdown in inventories since early last month. Higher prices of hot rolled coil (HRC) will need to be factored into CRC base prices. Offtake from standalone re-rollers is also gathering pace, and there is upside potential to prices going forward,” he said.
At least two in trade circles claimed that a leading Maharashtra-based re-roller concluded a supply contract for the October-December quarter with a southern passenger car manufacturer at a premium of two percent over the base prices of integrated mills, indicating that a positive outlook is gaining ground in the market.
$1 = INR 82.33
