Local Indian cold rolled coil prices have edged up over the past week on the back of cautious restocking by large industrial users after the inventory drawdown over the past few months and the pulling back of discounts by re-rollers, SteelOrbis learned from trade and industry circles on Monday, August 18.
Sources said that benchmark 0.9 mm CRC prices have gained INR 500/mt ($6/mt) to INR 55,600/mt ($637/mt) ex-Mumbai and are up INR 800/mt ($9/mt) to INR 60,100/mt ($688/mt) ex-Chennai in the south.
According to sources, large industrial users led by consumer durable and automobile manufacturers had been out of the market for the previous several weeks and are now cautiously returning to conclude fresh bookings as their raw material inventories had sunk in the meantime.
Also, these manufacturers are readying their output lines for the expected demand uptick in the festive season and their cautious bookings of raw materials are offering some new support to the market, the sources added.
“There is cautious optimism in the trade and user segments because of the approaching festive season and time for demand improvement. However, there is uncertainty on how much demand improvement can happen amid the all-round cost increases and consumer confidence not being very strong,” a Mumbai-based distributor told SteelOrbis.
“In the immediate term, prices will remain range-bound with some moderate upside potential in the medium term,” he added.
$1 = INR 87.45
