Local Indian cold rolled coil (CRC) prices have moved up following the base price hikes announced by large mills last week, but trade activity has continued to be moderate with key user industries expected to remain conservative on restocking owing to fiscal year-end considerations.
Sources said that benchmark 0.9 mm CRC prices have moved up by INR 800/mt ($9/mt) to INR 57,000/mt ($620/mt) ex-Mumbai and have gained INR 1,500/mt ($16/mt) to INR 63,200/mt ($688/mt) ex-Chennai in the south.
According to the sources, bookings volumes have continued to be on the moderate side as key user sectors, like the automotive sector, despite reporting robust sales growth in February, are expected to be cautious in restocking as the fiscal year draws to a close and companies focus on conserving liquidity.
However, a number of market intermediaries said that geopolitical uncertainties from the war in the Middle East are expected to fuel inflationary pressures stemming from higher energy costs and this will have an impact across manufacturing, and risks of demand compression across the economy are a distinct possibility in the coming weeks.
“The market is heading into deeper uncertainty. Producers will keep attempting to pass on higher energy costs to consumers. At the same time, overall inflationary pressures will depress overall demand. Trade sentiment will definitely move into more bearish territory,” a Mumbai-based source told SteelOrbis.
$1 = INR 91.84
