Local Indian cold rolled coil (CRC) prices have shown a mixed trend over the past week, in reaction to the easing of the pace of restocking by large industrial users and the resistance by buyers seen in select regional markets to the recent sharp price increases.
Sources said that benchmark 0.9 mm CRC prices are down INR 1,200/mt ($13/mt) to INR 55,000/mt ($610/mt) ex-Mumbai, but are up INR 900/mt ($10.mt) to INR 58,700//mt ($651/mt) ex-Chennai in the south.
According to the sources, the market has been showing divergent trends owing to selective buyer resistance to recent surges in prices, coupled with a slight slowing in the level of restocking by select user sectors. A section of the market maintained that prices had risen too sharply in too short a time and that large industrial users are taking pause in concluding fresh bookings, anticipating a possible wider correction setting in.
“A number of buyers are shifting to wait and watch. The market can go in either direction. The recent gains were on back of the tighter supplies and the base price increases announced by mills. The impact of these factors may be running out of steam. On the other hand, if mills go in for more base price increases, another round of restocking ahead of them could be possible,” a Mumbai-based distributor told SteelOrbis.
$1 = INR 90.20