Local Indian cold rolled coil (CRC) have surged sharply on back of all round aggressive restocking by large industrials and standalone re-rollers increasing spot prices after reportedly successful liquidating stocks and market anticipating tightening of supplies in the short term, SteelOrbis learned from trade and industry circles on Monday, December 29.
Sources said that benchmark 0.9 mm CRC price recorded gains of INR 4,500/mt ($50/mt) at INR 55,000/mt ($613/mt) ex-Mumbai and was up INR 1,500/mt ($16/mt) at INR 57,000/mt ($634/mt) ex-Chennai as both distributors and re-rollers push up prices to confirm new bookings.
According to the sources, the market has witnessed all round high volume buying from most large user sectors like automobile and industrial components and packing manufacturers. Most automobile manufacturers were heard to be ramping up assembly line outputs to maximum levels as they were confident of maintaining sales growth in the New Year and hence more aggressive in restocking raw materials.
“We are seeing price gains we have not seen in a long time. Producers, re-rollers and distributors can improve sales and margins. The mood in the market is very good. The only question is whether the market is moving up too fast, too soon and risks of a correction,” a Mumbai based distributor told SteelOrbis.
“The recent gains will have to hold for at least few more weeks for the market to consolidate at higher levels. Minor corrections cannot be rule out,” he added.
$1= INR 89.81
