Local Indian cold rolled coil (CRC) prices have started slipping over the past week as buyers have become cautious amid higher levels and as the market is awaiting base price signals from mills for March, even while demand is expected to remain moderate, SteelOrbis learned from trade and industry circles on Monday, March 2.
Sources said that benchmark 0.9 mm CRC prices have lost INR 300/mt ($3/mt) to INR 56,200/mt ($617/mt) ex-Mumbai and are marginally down INR 100/mt ($1/mt) to INR 61,700/mt ($677/mt) ex-Chennai in the south.
According to the sources, the market is showing “tiredness” amid higher prices at a time when a demand recovery remains elusive and higher prices are only being supported by a supply-side tightening.
It was pointed out that, while key user industries like automobiles and specialized packaging and construction are expected to maintain positive sales growth, these user segments will remain cautious as regards restocking to avoid locking in capital as the fiscal year comes to an end on March 31.
“The CRC segment of the market is evenly poised between demand and supply. It can go in either direction, with a slight downward bias. Demand is unlikely to be supportive of any further upside as the fiscal year draws to a close. The next direction will be determined by the base pricing strategy of mills,” a Mumbai-based distributor said.
“Sustained aggressive pricing by mills can be expected to trigger buyers’ resistance and a correction. Will producers risk this? - This is the moot question,” he added.
$1 = INR 91.05
