Local Indian cold rolled coil (CRC) prices have remained mostly stable during the past week, though with some regions showing gains despite muted trade activity due to reduced restocking reported by several large consuming sectors.
Sources said that benchmark 0.9 mm CRC prices are stable at INR 56,500/mt ($623/mt) ex-Mumbai, but have gained INR 400/mt ($4/mt) to INR 61,800/mt ($681/mt) ex-Chennai in the south.
According to the sources, despite regional variations in price movements, overall the market has been showing more balance between demand and supply, and mills, contrary to expectations, have not announced any base price increases in the current month, leading to positive price stability.
It was pointed out that large industrial consumers have become cautious towards restocking, preferring discipline as regards liquidity as the end of the current fiscal year approaches. The decline in overall trade volumes has helped rebalance demand and supply, and may be easing the tightness seen in recent weeks.
“The sharp uptrend in prices seen over past weeks has eased and the stability is positive for buyers even in a market seeing dips in trade volumes. We are also seeing a higher level of pricing discipline from mills as they seem to be abstaining from aggressive hikes,” a Mumbai-based distributor told SteelOrbis.
$1 = INR 90.70
