Local Indian cold rolled coil (CRC) prices have entered a new down-cycle with prices losing ground over the past week, with large industrial users keeping fresh bookings to minimal levels and traders pausing restocking waiting for new base price signals from mills.
Sources said that benchmark 0.9 mm CRC prices are down INR 800/mt ($9/mt) to INR 52,500/mt ($590/mt) ex-Mumbai and have lost INR 500/mt ($6/mt) to INR 55,500/mt ($624/mt) ex-Chennai in the south.
According to the sources, large industrial users led by automobile and white goods manufacturers have been either largely absent from the market or have been resorting to only need-based restocking of raw materials as they are mostly fully stocked to meet the current festival season demand for their products.
“There are very few players active in the market as current manufacturing sector growth as well as the outlook are very weak. No one is keen on carrying raw material inventory. Distributors too are fully stocked and are not in a rush to commit fresh bookings even with the possibility of local mills hiking base prices for November,” a Mumbai-based distributor told SteelOrbis.
“We hear some large users have started negotiations on long-term supply contracts with standalone re-rollers. Our assessment is that this will involve hard bargaining and a determinant for the next price trend,” he added.