Local Indian cold rolled coil prices continued to see losses reacting on negative outlook of key consuming sectors like automobile and standalone re-rolling mills left with high inventories as long term contract buyers deferred off-take, SteelOrbis learned from trade and industry circles on Monday, September 27.
Local tradable price was down INR 1,000/mt ($14/mt) to INR 72,000-73,000/mt ($975-990/mt) ex-Mumbai for benchmark 0.9 mm gauge CRC.
Higher value added thinner gauge 0.2-0.35 mm CRC prices too lost INR 1,000/mt ($14/mt) to INR 75,000-77,000/mt ($1016-1043/mt) ex-Mumbai.
According to the sources, demand outlook was getting increasingly negative. They said that not only dispatches from auto manufacturers to dealers falling, impacted by shortage of imported components, sales at dealer points too were falling and negative signal for the usual festival season sales surge in October-November period.
Several auto companies with long term supply contracts with rolling mills have renegotiated terms of such contracts deferring off-take resulting in high inventories with rolling mills and supply side pressures mounting on prices.
“Most integrated steel mills are adjusting their captive re-rolling production as conversion margins are getting squeezed by low realizations from CRC sales,” sources in ArcelorMittal Nippon Steel Limited (AMNS) said.
$1= INR 73.80