Local Indian cold rolled coil (CRC) traded prices have continued to trend lower, but losses have been on the marginal side amid thin trading conditions, with key user industries cautious about committing fresh bookings, SteelOrbis has learned from trade and industry circles on Monday, December 13.
The 0.9 mm benchmark CRC traded prices were down INR 200/mt ($3/mt) to the range of INR 72,300-72,800/mt ($958-964/mt) ex-Mumbai, while some standalone re-rolling mills were heard to be pushing sales at the slightly lower price of around INR 72,000/mt ($954/mt), the sources said.
“Among key user industries, most large automobile companies have already announced decisions to raise prices in January. This will temper retail sales, which along with the continued shortage of imported components, will offer strong headwinds for passenger car makers in their attempts to increase production and be a dampener of CRC demand,” a steel sector analyst with a Mumbai-based financial advisory firm said.
“Passenger car sales during October-November have been at a 10-year low and that too during the festival season, which usually sees peak yearly sales. Under such conditions, upticks in any sales during the last quarter of fiscal year 2021-22 are largely discounted and hence raw material restocking too will continue at lower levels and sustain pressures on prices,” he said.
At least two market intermediaries said that they learned from two producers that the latter were considering a second reduction in base prices in December to support the market, and this too contributed to buyers deferring bookings.
$1 = INR 75.50
