Local Indian cold rolled coil (CRC) prices have declined slightly as industrial buyers, led by the automobile sector, reduced restocking during the rainy season. Rerollers have been reporting a rise in inventory due to defaulting offtake by customers under long-term supply agreements, while traders have been offering discounts to push volumes into the market.
Sources said that benchmark 0.9 mm CRC price was down INR 500/mt ($5/mt) at INR 57,000/mt ($665/mt) ex-Mumbai and lost INR 1,000/mt ($10/mt) at INR 60,500/mt ($706/mt) ex-Chennai in the south.
According to the sources, most of the large passenger car makers have reduced output of their assembly lines to adjust production during lean demand monsoon season and were almost fully stocked for raw materials.
At the same time, some large rerollers in Maharashtra in the west were heard to be grappling with rise in inventories after few customers on long term supply agreements deferred lifting materials as per terms citing rains and lower consumption. These rerollers were heard to be pushing these volumes into the market, reportedly at 2-4 percent discount, the sources said.
“The movement of stocks from mill-to-market us slowing down week-on-week. Mills have also kept base price stable for June not risking triggers for further adverse turn of market conditions. But with key users cautious in restocking we expect downside price risks to sustain for next 2-3 months,” a Mumbai based distributor told SteelOrbis.
$1= INR 85.67
