Local Indian cold rolled coil (CRC) prices have slipped slightly as sluggish trade conditions have persisted amid the low offtake by large industrials on the one hand and higher supplies from re-rollers on the other.
Sources said that the benchmark 0.9 mm CRC price is down INR 500/mt ($6/mt) to INR 60,300/mt ($722/mt) ex-Mumbai and down INR 800/mt ($10/mt) to INR 61,050/mt ($731/mt) ex-Chennai in the south.
However, several reports available from trade channels indicate that many deals have been concluded by re-rollers at discounts of around INR 1,500/mt ($18/mt) or around INR 58,800-59,550/mt ($705-713/mt), aimed at liquidating inventories.
“Major industrial consumers are facing a number of headwinds in slower sales growth and rising input costs. They are extremely cautious in restocking raw materials. Hence, re-rollers are forced to divert volumes earmarked for supplies under long-term agreements to merchant sales. There is just too much volume chasing too few buyers,” a Mumbai-based distributor told SteelOrbis.
“We do not see any demand uptick during the monsoon months of July-October. Prices at best can be expected to be range-bound. Most market participants are awaiting definitive import data for June to get an idea of the import pressure that is coming,” he said.
$1 = INR 83.50
