Local Indian cold rolled coil (CRC) prices have showed a mixed trend over the past week after large mills increased base prices, with a section of the market anticipating buyers’ resistance will emerge, while rising inflationary pressures are also a factor.
Sources said that benchmark 0.9 mm CRC prices have been maintained at INR 64,000/mt ($687/mt) ex-Mumbai and are marginally down by INR 200/mt ($2/mt) to INR 66,800/mt ($717/mt) ex-Chennai in the south.
The sources said that the fact that trade prices have not reacted significantly to the base price hikes last week indicates little material change in the demand profile in user industries, along with possible resistance emerging to higher levels in the market.
Inflationary pressures building up based on rising energy prices will continue to weigh on market sentiments and trade activity, but opinions differ on whether a strong correction could be seen in the short and medium terms.
“The market is delicately poised currently and can go in either direction. It will depend on how the dynamics of inflationary pressures and demand play out in the coming weeks. With a resolution to the Middle East geopolitical tensions proving elusive, we can expect costs to remain on the rise,” a Mumbai-based distributor told SteelOrbis.
“How much pressure rising costs will put on demand is still to be assessed. The mood will remain cautious in the short term,” he added.
$1 = INR 93.14
