Local Indian cold rolled coil (CRC) traded prices have continued to seek lower levels in reaction to the slowdown in trading activity and the rising inventories reported by integrated mills and standalone re-rolling mills, SteelOrbis learned from trade and industry circles on Monday, December 27.
The benchmark 0.9 mm CRC prices have been losing ground faster than hot rolled coil (HRC) prices, declining by INR 2,000/mt ($27/mt) to INR 68,000-68,500/mt ($907-913/mt) ex-Mumbai, while a low traded price of around INR 67,500/mt ($900/mt) was heard in the southern regional market of Chennai.
The sources maintained that inventories in trade circles are on the higher side and fresh bookings are being deferred in anticipation of base price reductions by mills in January. Re-rolling mills are also facing pressures of inventories as buyers under long-term contracts have been deferring taking deliveries as automobile manufacturers have been revising downwards their last quarter sales amid the continuing import component shortages.
The demand recovery in the automobile sector is still seen to be tentative and some forecasts of the Omicron virus triggering another wave of the pandemic in January and February are ensuring extremely cautious raw material bookings and manufacturers are unwilling to risk large inventories, the sources said.
A section of the market is expecting base price reductions by mills in January by at least INR 2,000/mt ($27/mt) to liquidate inventories and support market trading activity.
$1= INR75.00
