Indian local cold rolled coil (CRC) prices have come under renewed pressures from trade channels pulling out of the market and industrial users being cautious in restocking during the lean season, SteelOrbis learned from trade and industry circles on Monday, June 19.
Sources said that local benchmark 0.9 mm CRC trade prices are down INR 600/mt ($7/mt) to INR 59,700/mt ($729/mt) ex-Mumbai and have lost INR 300/mt ($3/mt) to INR 58,850/mt ($719/mt) ex-Chennai in the south.
They said that, despite the slight rise in the landed price of ex-South Korea CRC, it did not ease pressures from import competition on local prices. It was pointed out that the discount of the landed price of imports to domestic prices which ranged at 15-17 percent early in the month now prevailed in the range of 10-12 percent following higher offers from South Korean mills, but it was not sufficient for large end-users in the automobile sector to reduce import dependency and hence local bookings have remained low.
However, the mills has maintained a positive outlook claiming the current bearish mood to be temporary. “The market is weak and slow. But this is a temporary seasonal downturn. We are optimistic as we assess demand will return during August-September when industry begins to gear up production for festive season sales and raw material rebooking will see a revival,” an official at Jindal Steel and Power Limited (JSPL) told SteelOrbis.
“Margins had been under pressure at start of the current fiscal year. But with raw material prices cooling, we are positive as regards improving realizations from the next quarter onwards. Coupled with demand and volume increases, prices will recover,” he added.
$1 = INR 81.90