Local Indian cold rolled coil (CRC) prices have recorded gains amid the continued robust bookings received by re-rollers, the slight tightening of supplies from integrated mills, and the pause in import deals.
Sources said that benchmark 0.9 mm CRC trade level prices have increased by INR 350/mt ($4/mt) to INR 60,800/mt ($734/mt) ex-Mumbai and are up INR 750/mt ($9/mt) at INR 60,450/mt ($730/mt) ex-Chennai in the south.
In the meantime, according to sources, no import bookings have been reported over the last few days, supporting sentiments in the local market, and automobile manufacturers have placed large-volume bookings, with local re-rollers readying to increase assembly line outputs and build up inventories for the expected festival season sales spike in the September-November period.
Industrial specialized packaging material and pipe manufacturers in southern India have placed bulk bookings with integrated mills, prompting trade channels to increase prices.
“The outlook is positive and prices are on to the next cycle in an upturn. Producers are expected to seize the opportunity to increase base prices at end-August or early September. But trade channels are still cautious about restocking, largely because of the higher cost of funds from lending institutions,” a Mumbai-based distributor told SteelOrbis.
“Imports have taken a pause because of the Indian rupee depreciating against the US dollar and being poised to touch the INR 83.00 to the dollar mark. But imports, ex-South Korea and ex-Japan, continue to remain a threat to the current buoyancy seen in the local market,” he added.
$1 = INR 82.80