Local Indian cold rolled coil (CRC) prices have slipped during the past week, after large mills dropped base prices for the current month, coupled with declining bookings from industrial users and higher inventories across the supply chain, SteelOrbis learned from trade and industry circles on Monday, July 13.
Sources said that benchmark 0.9 mm CRC prices have lost INR 200/mt ($2/mt) to INR 64,300/mt ($673/mt) ex-Mumbai and are down INR 400/mt ($4/mt) to INR 65,000/mt ($680/mt) ex-Chennai in the south.
Major industrial users led by automobile manufacturers, seeing their sales growth tapering off during the low-demand monsoon season, have been almost absent from the market, leading to almost insignificant trade volumes, the source said.
As a result, inventories have been rising at producers and distributors, prompting a section of sellers to offer either discounted prices or offer extended credit terms even for lower volumes, the sources added.
“It is a very negative oversupply situation in the market. Without any demand improvement, higher stocks will continue to exert pressure on prices. Discounted sales are more pronounced in the southern regional market,” a Mumbai-based distributor said.
“Trade prices will incrementally seek lower levels until around September-October. Until then, prices will continue to face downside risks,” he added.
$1 = INR 95.24
