Local Indian cold rolled coil (CRC) prices have slipped in reaction to large end-use industries taking an extended pause from restocking and trade channels heard to be carrying sufficient inventories.
Sources said that benchmark 0.9mm CRC prices are down INR 400/mt ($5/mt) to INR 62,400/mt ($749/mt) ex-Mumbai and down INR 200/mt ($2/mt) to INR 63,850/mt ($767/mt), ex-Chennai in the south. Large user industries in automobile, consumer durables and industrial packaging have been deferring restocking, anticipating a slowdown in movement of products during the lean period immediately after the recent festival-led surge in sales growth.
“The market is currently delicately poised and can go in either direction here on. There will be a seasonal demand decline. The question is whether it will be short or prolonged,” a Mumbai-based distributor told SteelOrbis, adding, “Signals are also unclear on base prices of mills. The latter maintained base prices in November. Their stance for December is unclear. It is possible elections and political considerations will prompt mills to adopt a conservative position on domestic pricing.”
However, an official at an Odisha-based privat mills said, “No decision has been taken on December pricing. We are looking at all options. Our decision will be based on market conditions and how best to service our customers. It is also a fact that input prices have surged in the current month, which is not factored into our current pricing.”
$1 = INR 83.30
