Local Indian cold rolled coil (CRC) prices have showed mixed trends with regional variations in the past week, amid a largely negative outlook, with lower trade volumes and industrial users expected to adopt more cautious restocking with the approaching monsoon season.
Sources said that benchmark 0.9 mm CRC prices are down about INR 900/mt ($11/mt) to INR 58,500/mt ($687/mt) ex-Mumbai, while the price in the south has been estimated at INR 61,000/mt ($717/mt) ex-Chennai, slightly higher than was reported last week. The surge in the southern regional market was largely attributed to logistical and infrastructural challenges being faced by a section of industrial buyers in securing timely deliveries and a few local re-rollers charging a higher price for short timeline deliveries, even though the overall demand outlook over medium term remains bearish, the sources said.
“We do not consider the regional price increase to be of much significance, but an aberration caused by logistical issues. The price outlook is negative. Industrials will adjust raw material procurement factoring in the lean demand months ahead,” a Mumbai-based distributor said.
“The slowdown in stock movement across the supply chain despite two large mills slated to shut down for maintenance is an indication of oversupply in the market and the resistance to higher prices coming from the overall sluggish demand situation,” he added.
$1 = INR 85.07