Local Indian cold rolled coil (CRC) prices have continued to strengthen over the past week, amid robust restocking by leading user industries led by automobile manufacturing, and the tightening of supplies and price increases reported from standalone re-rollers, SteelOrbis learned from trade and industry circles on Monday, January 5.
Specifically, benchmark 0.9 mm CRC prices have gained INR 1,200/mt ($13/mt) to INR 56,200/mt ($624/mt) ex-Mumbai and are up INR 800/mt ($8/mt) to INR 57,800/mt ($642/mt) ex-Chennai in the south. According to the sources, large consuming sectors like automobile and specialized packaging manufacturers have been active in restocking, buoyed up by being able to sustain robust sales growth in December and expecting to maintain momentum in the last quarter of the fiscal year.
At the same time, standalone re-rollers have reported significant liquidation of inventories and have been taking advantage of this to seek higher prices for spot sales and immediate deliveries, the sources said.
“The recent base price hike has been absorbed by the market, helped by sustained restocking by the automobile industry. On the supply side, the market is gradually moving from excess to tighter supplies. This is a big positive for producers, as it gives them a window to improve margins at a time when raw material prices are increasing,” a Mumbai-based distributor told SteelOrbis.
“As for market intermediaries, the sustained buying seen over the past fortnight has enabled stock liquidation and distributors have a much better cash flow, helping them replenish stocks through fresh bookings,” he added.
$1 = INR 90.09