Local Indian cold rolled coil (CRC) prices have shown a firm consolidation at higher levels over the past week backed by recent base price increases by mills, moderate restocking by key user industries and lower-than-normal inventories held by distributors.
Sources said that benchmark 0.9 mm CRC prices have gained INR 1,200/mt ($13/mt) to INR 56,400/mt ($622/mt) ex-Mumbai and are up INR 1,200/mt ($13/mt) to 61,200/mt ($675/mt) ex-Chennai in the south.
At the same time, according to sources, some distributors have confirmed bookings at higher levels in the range of INR 62,000-62,500/mt ($684-690/mt) for deliveries with shorter timelines, reflecting the tight supplies in the market.
Some standalone re-rollers in the western regional market of Maharashtra are heard to have very low inventories, and large distributors facing restocking challenges have been seeking higher prices from buyers wanting immediate deliveries, the sources said.
“Major users like the automobile industry have been able to sustain robust sales growth even as the fiscal year draws to a close, a period which usually sees softer sales. This has given users greater confidence to sustain raw material restocking, contributing to strong CRC demand matched by tighter supplies offering a price boost,” a Mumbai-based dealer told SteelOrbis.
“The market is also not ruling out another base price hike by mills in February in the range of INR 750-1,000/mt ($8-12/mt),” he added
$1 = INR 90.43
