Local Indian cold rolled coil (CRC) prices have entered a firm uptrend over the past week as the market mood has improved with key users like the automobile sector posting strong sales growth in January and amid reports of a tightening of supplies from mills and re-rollers, particularly for buyers seeking immediate deliveries.
Sources said that benchmark 0.9 mm CRC prices are up INR 700/mt ($8/mt) to INR 55,200/mt ($602/mt) ex-Mumbai and are up INR 300/mt ($3/mt) to INR 60,000/mt ($654/mt) ex-Chennai in the south.
According to the sources, southern India-based re-rollers have reported tighter supplies and are seeking a premium for immediate deliveries, while there are overall lower supplies from mills to traders, providing impetus for prices.
It was observed that, despite fiscal year-end considerations and the usual slowdown, automobile companies have been able to sustain strong double-digit sales growth in January, with market expectations rising for a revival in restocking, which coupled with the tightening of supplies from both re-rollers and mills, would offer fresh support to the market.
Indications available from mills suggested that the latter could increase February base prices by at least INR 1,000/mt ($10/mt) on the back of the tighter supplies seen in the market in recent weeks and any fresh restocking drive by key user industries.
$1 = INR 91.61
