Local Indian cold rolled coil (CRC) prices have continued to seek higher levels during the past week despite the festival holidays. Prices have trended upwards on the back of sustained strong bookings by the automobile industry for their increased production aimed at meeting higher-than-expected festival season demand.
According to market sources, local CRC prices have gained INR 300-500/mt ($4-7/mt) to levels of INR 49,800-50,000/mt ex-stockyard amid strong raw material restocking by key user industries such as automotive and consumer durable manufacturers.
Market sentiment has remained strong amid expectations that the 28 percent September growth in passenger car sales will improve in the October-November period, with dealers reporting improved stock movement and automobile manufacturers increasing dispatches to their sales networks, sources said.
“The mood in key user industries is improving every month. In the case of automobiles, sales are nearing pre-Covid levels and can surpass them during the current festival months. This is a very positive signal for the CRC market,” an official at ArcelorMittal Nippon Steel Limited said.
“Industry rolling mills are also operating at optimal levels and hence the supply side will also offer strong support to higher prices,” he added.
$1 = INR 73.50
