Local Indian cold rolled coil (CRC) prices have firmed up over the past week with wide regional variations amid expectations of base price increases by mills and some re-rollers lowering output levels in the face of higher energy costs and supply issues.
Sources said that supplies from re-rollers in the western region are reported to be very tight as several rolling mills are lowering output since they face challenges in securing confirmed energy supplies, and this has extended delivery timelines for several key consumers.
Benchmark 0.9 mm CRC prices have surged INR 1,100/mt ($12/mt) to INR 58,100/mt ($627/mt) ex-Mumbai, while the increase was a more modest INR 300/mt ($3/mt) to INR 63,500/mt ($685/mt) ex-Chennai in the south.
Large mills are expected to cite rising energy costs resulting from the war in the Middle East as a reason to hike base prices by an anticipated margin of around INR 1,200/mt ($13/mt), to be effective from about the end of this month.
“The coming weeks will see low-to-moderate bookings from large industrials owing to fiscal year-end considerations. However, this can pick up starting in April as the new fiscal kicks in. Any base price increase, therefore, is likely to be absorbed by the market. Also, there is lower import competitions as the import option is risky considering delivery uncertainties and freight costs,” a Mumbai-based distributor told SteelOrbis.
$1 = INR 92.31
