Local Indian cold rolled coil (CRC) prices have recorded modest gains over the past week, reversing a recent downturn on the back of moderate restocking by a few large industrial users and expectations of base price hikes by mills.
Sources said that benchmark 0.9 mm CRC prices are up a marginal INR 100/mt ($1.50/mt) to INR 52,600/mt ($593/mt) ex-Mumbai and have gained INR 500/mt ($6/mt) to INR 55,600/mt ($627/mt) ex-Chennai in the south.
Buoyed by the highest-ever monthly sales growth of 41 percent for automobile manufacturers in October, several companies have returned to the market. And although new booking volumes have been moderate, overall market sentiment has improved. At the same time, expectations of a base price increase of around INR 1,000/mt ($11/mt) also lend support toward bringing stability.
“The return of some stability in the market is welcome. Key user industries like automobile are also showing more confidence in restocking, although volumes are still on the lower side,” a Mumbai-based distributor told SteelOrbis.
“However, there are still doubts over any immediate upside potential. There are still excess volumes floating in the market, particularly high inventories at standalone re-rollers and supply-side pressures will offer headwinds to further gains from the current levels,” he added.
$1 = INR 88.62
