Local Indian cold rolled coil (CRC) prices have showed modest gains as key user industries have continued restocking though cautiously with smaller volumes and given the expected base price hikes by large mills, SteelOrbis learned from trade and industry circles on Monday October 7.
Sources said that the benchmark 0.9 mm CRC price was up INR 800/mt ($10/mt) to INR 56,200/mt ($671/mt) ex-Mumbai and up INR 500/mt ($6/mt) to INR 58,100/mt ($693/mt) ex-Chennai in the south.
Meanwhile, according to sources, integrated mills are expected to announce a base price increase of around INR 1,500/mt ($18/mt) over the next seven to 15 days. They said that a section of traders is seen to be restocking with cautious small volumes, while large industrial users led by automobile makers are lifting stocks against long-term supply agreements with re-rollers providing support to prices and easing inventory pressures on producers.
“Trade activity is livelier, and prices are consolidating higher, although at a slower pace. We are, however, not sure if this will be sustained, and fundamental manufacturing sector growth rates continue to remain negative. The automobile industry is continuing to show stress and declining sales,” a Mumbai-based distributor told SteelOrbis.
“We are cautiously optimistic and waiting for a more definitive trend expected to emerge after the festivals holidays, later this month,” he added.
$1 = INR 83.80
