Local Indian cold rolled coil (CRC) prices have inched up over the past week with reports of re-rolling mills having completed stock liquidation partially supporting the market, but the outlook remains negative with user industries expected to see a slowdown in their sales growth in the months ahead and lower restocking of feedstock like CRC, SteelOrbis learned from trade and industry circles on Monday, June 1.
Sources said that benchmark 0.9 mm CRC prices have gained INR 200/mt ($2/mt) to INR 64,500/mt ($677/mt) ex-Mumbai and are up INR 400/mt ($4/mt) to INR 65,400/mt ($687/mt) ex-Chennai in the south.
According to the sources, a few large re-rollers have been able to liquidate excess inventories, easing pressures on prices slightly. However, the mood remains bearish as large consumers like automobile producers are expected to remain cautious in restocking, as prices hikes for cars and rising fuel costs are expected to temper demand.
Market participants expect large mills to announce base price hikes for June by around INR 1,000/mt ($11/mt). Higher prices and declining demand will continue to weigh on the market with buyers reducing bookings and a further fall in trade activity, the sources said.
“There is no positive driver in the near term and too many negatives mostly due to the impact of prolonged geopolitical uncertainties in the Middle East. Rising energy prices will continue to offer strong headwinds to industrial growth,” a Mumbai-based distributor said.
$1 = INR 94.75
