Local Indian cold rolled coil prices have consolidated at higher levels over the past week, but the pace of the rise has eased slightly amid a reported improvement in inventory levels held by re-rollers and with key user industries becoming a bit more cautious in restocking, SteelOrbis learned from trade and industry circles on Monday, May 12.
Indian benchmark 0.9 mm CRC prices have gained about INR 500/mt ($5.9/mt) to INR 60,000-61,000/mt ($705-717/mt) ex-warehouse, with the price at the higher end of the range, effective for deliveries ex-Chennai in the south.
Sources said that standalone re-rollers have reported a slight rise in inventories which, coupled with more cautious restocking by user industries led by automotive, has caused a slowdown in the pace of the price rise even though the outlook among market participants has remained positive.
“In our assessment, the impact of rising inventories at re-rollers will be offset by a tightening in supplies from large mills, with at least two mills expected to go in for maintenance shutdowns in May and this will offer support for prices,” a Mumbai-based distributor said.
“Going ahead, the mood in the market is expected to be better and more confident with the ceasefire announced in the military face-off between India and Pakistan. Trade can be expected to resume restocking later this week,” he said.
$1 = INR 85.12
