Local Indian cold rolled coil (CRC) prices have entered an uptrend during the past week, gaining ground amid reports of re-rollers facing inventory drawdowns and extending delivery timelines, along with automobile manufacturers continuing to restock moderate volumes.
Sources said that benchmark 0.9 mm CRC prices are up an average INR 1,000/mt ($12/mt) to the range of INR 58,700-60,500/mt ($688-709/mt), with the price at the higher end of the range effective for southern regional markets around Chennai.
According to sources, re-rollers based in the western and southern regions are reporting a sharp fall in inventories and, while supplies have been prioritised for customers with long-term supply agreements, buyers on spot basis have been given extended timelines for delivery as result of tight inventories.
They said that car manufacturers among large industrial are slightly more confident in restocking raw materials on the back of indications of decent April sales growth expectations and the perception that the market has absorbed across-the-board price increases effective for April.
“The mood among producers is good expecting good leverage to increase prices on the supply-side tightening, but the mood among buyers in cautious and fresh bookings are moderate. In the short term, the balance is in favour of sellers, but it can change sharply in May as mills under maintenance come back into production and tight inventories of re-rollers ease,” a Mumbai-based distributor told SteelOrbis.
$1 = INR 85.40