Local Indian cold rolled coil (CRC) prices have inched up slightly over the past week amid signs of the market cooling down and a slowdown in bookings, though market participants have kept maintaining a positive outlook based on the tightening of supplies across the supply chain, SteelOrbis learned from trade and industry circles on Monday, February 16.
Sources said that benchmark 0.9 mm CRC prices are up a modest INR 100/mt ($1/mt) to INR 56,500/mt ($624/mt) ex-Mumbai and up INR 200/mt ($2/mt) to INR 61,400/mt ($678/mt) ex-Chennai in the south.
The easing of the recent uptrend has been attributed to the lower number of industrial buyers active in the market and key users turning cautious and refraining from aggressive restocking at current higher levels. However, most market participants have ruled out any “serious correction” setting in as producers across mills and standalone re-rollers have continued to report lower-than-normal inventories.
“The easing of the pace of the recent price uptrend is normal as the rise has been too fast. The market is cooling as large buyers are turning cautious and some are pausing restocking,” a Mumbai-based distributor told SteelOrbis.
“However, prices are unlikely to decline significantly as the market will find supply-side support,” he added.
$1 = INR 90.54
