Local India cold rolled coil (CRC) prices have continued to fall for the third consecutive week, losing INR 500/mt ($7/mt) week on week to INR 42,700/mt ($569/mt) ex-works as most re-rollers, predominantly based in western India, closed down operations and integrated steel mills drastically reduced or halted captive conversion, SteelOrbis has learned on Monday, March 30.
Even though most large integrated steel mills have reduced production by a range of 30-70 percent since the national lockdown came into effect from March 25, CRC inventories have mounted with bookings by the auto sector down to nil and a base price reduction in the range of INR 500-1000/mt ($7-14/mt) inevitable for next month.
Market sources have said that steel mills have been hit as road transportation has come to a halt and only small volumes have been dispatched by western India-based producers via rail as state-transporter Indian Railways is maintaining freight movement.
A manager at a western India-based steel mill has said that most integrated steel mills have seen their CRC inventories spike by a range of 20-40 percent since early March, owing to the fall in bookings forcing producers to reduce captive rolling conversion.
$1 = INR 75.10
