Local Indian cold rolled coil (CRC) prices have remained stable over the past week amid the negative outlook stemming from the anticipated fall in demand from key user sectors and the continued logjam between producers and buyers over long-term supply contracts, SteelOrbis learned from trade and industry circles on Monday, March 27.
Indian benchmark 0.9 mm CRC trade prices have remained at INR 64,800/mt ($785/mt) ex-Mumbai and are unchanged at INR 63,050/mt ($764/mt) ex-Chennai in the south.
According to the sources, sentiments are extremely negative in trade channels as no long-term supply contracts for the April-June quarters have been successfully concluded between producers and large industrial users despite a week to go before the end of the fiscal year.
They said that buyers and producers are in a logjam with the latter insisting on a price escalation over existing contracts, while the former are seeking a revision based on the average price of the past three months.
“There is a bearish outlook from trade channels. Leading consumers are expected to reduce fresh bookings. For example, most automobile manufacturers have announced sharp price increases which will impact sales growth going forwards. With auto makers failing to sustain sales growth, raw material bookings too will slow down,” a Mumbai-based distributor said.
“We can expect various differing pulls in the market. Trade volumes and prices will remain under pressure, while mills are most likely to push for higher base prices, citing input cost increases. This will result in market volatility,” he said.
$1 = INR 82.50
