Local Indian cold rolled coil (CRC) prices have continued to move down amid the poor off-take by end-users within the scope of long-term supply agreements and the resultant pile-up of inventories at re-rollers, and with trade channels also halting new bookings.
Sources said that benchmark 0.9 mm CRC trade prices have declined by INR100/mt ($1.20/mt) to INR 61,900/mt ($745/mt) ex-Mumbai and are down INR 200/mt ($2/mt) to INR 62,950/mt ($758/mt) ex-Chennai in the south. Meanwhile, several sources in trade channels reported that material has been on offer at discounted prices in the range of INR 58,000-59,000/mt ($698-710/mt) ex-warehouses of western India-based re-rollers.
“Everyone, trade and end-users, are restricting themselves only to need-based purchases. Large industrial users are continuing to defer lifting stocks under long-term supply agreements with re-rollers, and the latter are therefore pushing volumes into trade at discounts,” a Mumbai-based distributor told SteelOrbis.
“There is strong concern over the slowdown in overall industrial growth. Moreover, the Indian national elections and the rise in political activity will only heighten nervousness in the market and no participant will be willing to commit large bookings,’ he added.
$1 = INR 83.10
