Local Indian cold rolled coil (CRC) prices have gained for the ninth consecutive week, moving up by INR 250/mt ($3.4/mt) week on week to INR 43,500/mt ($608/mt) ex-works amid steady bookings by key user segments and anticipation of higher bookings by automobile manufacturers, SteelOrbis was informed on Monday, January 27.
According to traders, even though existing stocks are still moving slowly, market intermediaries have been restocking modest volumes ahead of the anticipated base price increase by local steel mills to offset input cost increases.
Market sources said that local steel mills are expected to increase base CRC prices by INR 500/mt ($7/mt) over the next two weeks for February deliveries.
The sources said that sentiments among automobile manufacturers are seen to be improving marginally and, even though monthly sales remain sluggish, manufacturers are expecting a reversal and are slowly bringing idle production lines back into operation and this could trigger a mild revival in CRC bookings.
The market is expecting tariff and non-tariff barriers to be imposed on imported steel products in the forthcoming national budget to be placed before India’s parliament in February and this would support local steel mills’ attempt to push up prices, the sources added.
$1 = INR 71.50