Local Indian cold rolled coil (CRC) prices have sought higher levels in reaction to higher base prices announced by some larger mills and the shortage of material in the market particularly in the southern region.
Sources said that benchmark 0.9 mm CRC trade prices are up INR 1,000/mt ($12/mt) to the range of INR 54,500-57,200/mt ($627-658/mt). The highest end of the price was reported to be effective for bookings in the southern region of Chennai where some volumes were heard to have been booked at the even higher level of INR 57,800/mt ($665/mt) as some standalone re-rollers dominating this region are reported to have very low volumes available to meet immediate delivery commitments.
“Mills are increasing prices based on expectations of import protection measures from the government. There is some improvement in trade-level prices owing to the short-term slowdown of the movement of stocks from re-rollers to consumers,’ a Mumbai-based distributor told SteelOrbis.
“But we do not see a further price upside and in fact it might settle lower amid buyers’ resistance. It might be noted that larger consumers among automobile manufacturers are reporting declining sales growth, which will make them more cautious in restocking raw materials. Fundamentals on the demand side do not look good enough to support higher prices,” he added.
$1 = INR 86.90