Local Indian cold rolled coil (CRC) prices have lost ground slightly as large industrial consumers have paused new bookings, while trade channels have also become cautious about restocking as they face liquidity challenges.
Sources said that benchmark 0.9 mm CRC prices are down INR 700/mt ($8/mt) to INR 60,500/mt ($726/mt) ex-Mumbai and are down INR 750/mt ($9/mt) to INR 61,500/mt ($738/mt) ex-Chennai in the south.
“Despite the slight decline in price, we maintain our positive outlook. Stocks are moving fast from rerollers to consumers on long-term supply agreements. Some large industrials may be taking a break in offtake on spot basis. Also, large traders are facing come challenges in securing bank funding, but we think this is temporary,” a Mumbai-based distributor told SteelOrbis.
“The market will continue to find robust support from the domestic automotive industry which is recording record sales growth despite having effected price increases across all categories of vehicles. The only headwind seen is imports as some international passenger car companies are preferring ex-South Korean CRC for their consumption even though the landed price of imports and local prices have minimal differentials at the moment,” he added.
$1 = INR 83.30
