Local Indian cold rolled coil (CRC) prices have suffered fresh setbacks over the past week amid the continued absence of large industrial users in the market and standalone re-rollers dropping prices to counter rising inventories even as market sentiments worsened due to expectations of further declines with the intensity of monsoon rains becoming more widespread across the country.
Sources said that benchmark 0.9 mm CRC prices have declined by INR 900/mt ($10/mt) to INR 55,300/mt ($643/mt) ex-Mumbai and are down INR 900/mt ($10/mt) to INR 59,800/mt ($695/mt) ex-Chennai in the south.
According to sources, a number of re-rollers in the western region were faced with sudden rises in inventories, with buyers defaulting on lifting stocks, forcing them to offer these volumes in the market after dropping prices by at least around INR 1,000/mt ($12/mt).
“With large industrial consumers led by automobile manufacturers continuing to remain away from restocking in the market, and the trend expected to sustain through the monsoon season till end-September, the market expects a further downside correction in the price line,” a Mumbai-based distributor told SteelOrbis.
“Trade channels are also cautious about restocking, faced with liquidity challenges and fund flow tightening, as most intermediaries are having to offer extended credit terms for buyers to confirm deals,” he added.
$1 = INR 86.00