Local Indian cold rolled coil (CRC) prices have remained stable in the past week, but some re-rollers have reported discounted sales of stocks not lifted by buyers under long-term supply contracts, which have depressed sentiments and the market outlook.
Sources said that benchmark 0.9 mm CRC prices have remained at INR 53,300- 56,000/mt ($616-647/mt), the same as last week. However, a number of market participants said that deals in the western region have been heard at a low of around INR 53,000/mt ($612/mt) net of discounts as re-rollers attempted to liquidate stocks not lifted under long-term contracts.
They said that at least two western India-based standalone re-rolling mills are heard to have been saddled with estimated stocks of 15,000-22,000 mt after their buyers defaulted on lifting stocks in the October-December quarter forcing the re-rollers to push sales in the spot market.
“Some buyers defaulting on their long-term purchase commitments show the negative demand outlook and has impacted sentiments. Major consumers like automobile manufacturers have announced price increases across their product portfolios and this will slow down sales growth in the quarter and hence also demand for raw material,” a Mumbai-based distributor told SteelOrbis.
“The market is keeping a close watch on whether defaults on long-term sales contracts snowball and impact trade-level prices. This will also have an impact once buyers and sellers commence new long-term supply contracts for the first quarter (April-June) of the fiscal year 2025-26,” he added.
$1 = INR 86.60