Local Indian cold rolled coil (CRC) prices showed a mixed trend amid thin trade activity over the past week, with standalone re-rollers in some regions attempting to push sales at lower prices, while some markets have showed gains owing to localized factors.
Sources said that benchmark 0.9 mm CRC prices are down INR 500/mt ($6/mt) to INR 51,500/mt ($574/mt) ex-Mumbai, but are up INR 750/mt ($8/mt) to INR 56,000/mt ($625/mt) ex-Chennai in the south.
According to the sources, large industrial users including automobile manufacturers have been largely out of the market having completed raw material restocking. At the same time, the market lacks any definitive trend, prompting small and medium-scale user industries to defer fresh bookings.
The divergent trend was attributed to some standalone re-rollers in the western regional market lowering prices to confirm sales while in southern regions some supply dislocations have been reported and sellers have been seizing the opportunity to increase prices for buyers seeking deliveries in short timelines, the sources said.
“In the absence of positive drivers from the demand side, CRC prices can be expected to remain range-bound in the short and medium terms. However, if November car sales growth replicates the sales surge seen in October, manufacturers will get more confidence to restock, providing new support to the market,” a Mumbai-based distributor told SteelOrbis.
$1 = INR 89.60