Local Indian cold rolled coil (CRC) prices have continued to seek higher levels, although the pace of the rise has eased slightly with end-users exercising greater caution in building inventories but, with mills almost certain to hike base prices, any correction in the market has been ruled out, SteelOrbis learned from trade and industry circles on Monday, January 30.
Indian benchmark 0.9 mm CRC trade prices have moved up INR 1,200/mt ($15/mt) to INR 64,700/mt (794/mt) ex-Mumbai and are up INR 2,000/mt ($25/mt) to INR 63,550/mt ($779/mt) ex-Chennai in the south.
Even though the rally in trade prices has eased slightly with end-users slightly reducing booking activity, imminent base price increases shortly by mills have prevented any correction setting into the market, traders said.
They said that reports that at least two to three major re-rolling mills have submitted papers seeking to start long-term supply contract for the first quarter (April-June) of the fiscal year 2023-24 and indications available suggest that the two suppliers sought a 8-12 percent increase over the ongoing contract price.
“The price increase seen in the case of CRC is normalizing after recent surges. It still remains the slowest moving among all flat products.,” a Mumbai-based distributor said.
“End-users are cautious. Key industries like automobile and consumer durables are facing headwinds of inflation in maintaining their recent sales growth. Most companies in these industries have had to effect price increases for their products in January, which will temper down sales and thereby raw material restocking. However, demand from pipes and tubes and specialized packaging material is holding ground,” he said.
$1 = INR 81.50
