Local Indian cold rolled coil (CRC) prices have remained stable amid thin trading activity but the outlook has remained mainly positive as key user industries are expected to revive restocking of raw materials over the next few days, after reporting strong sales during the recent festival period and a sharp drawdown in finished product inventories, SteelOrbis learned from trade and industry circles on Monday, November 20.
Sources said that benchmark 0.9 mm CRC prices have remained unchanged at INR 62,800/mt ($754) ex-Mumbai and stable at INR 64,050/mt($769/mt) ex-Chennai in the south.
According to the sources, re-rolling mills, many of which were closed for the festival holidays resulting in low trade activity, have been resuming operations slowly and are expected to start confirming bookings over the next few days. Besides, large industrial users like automobile and consumer goods have reported strong sales during festival months of October and November, leading to a sharp drawdown in raw material inventories, and will commence restocking in the coming days, possibly triggering the next upcycle.
“The low trading conditions will pass over the next few days. Unlike other flat products which are coming under pressure, the CRC market is moving in the opposite direction driven by robust demand from its end-user segment,” a Mumbai-based distributor told SteelOrbis.
“End-users will be aggressive in restocking even as mills remain undecided over revising base prices,” he added.
$1 = INR 83.30
