Local Indian cold rolled coil (CRC) prices have lost ground amid improved supplies from re-rollers and higher inventory in trade channels, but market participants have preferred to see the trend as an “adjustment” and “not a correction” and mills are still expected to increase base prices in the coming week.
Sources said that the benchmark 0.9 mm CRC trade price is down INR 400/mt ($5/mt) to INR 63,500/mt ($763/mt) ex-Mumbai and down INR 500/mt ($6/mt) to INR 64,450/mt ($777/mt) ex-Chennai in the south.
They said that prices are seen to be adjusting to changes in the supply side but they have discounted possibilities of any major corrections setting in as higher supplies would be absorbed by the expected increase in bookings from end-users like those in the automotive sector, and sustained demand would also support mills in their plans to hike base prices in two or three increments starting next week.
“The price adjustment seen over the past week is not a worry. The market has inherent demand to start consolidating higher. Base price increases will trigger the next upturn,” a Mumbai-based distributor said.
“Automobile and tube manufacturers will drive demand and are seen to be readying to resume restocking over the coming days,” he said.
$1 = INR 83.20
