Local Indian cold rolled coil (CRC) prices have remained stable during the past week, supported by more re-rollers reporting long-term supply contracts for the current quarter and improved stock movement in trade channels.
Sources said that benchmark 0.9 mm CRC prices are stable at INR 61,200/mt ($734/mt) ex-Mumbai and are unchanged at INR 62,250/mt ($747/mt) ex-Chennai in the south.
The sources said that at least three large western India-based re-rollers have reported concluding long-term supply agreements with large industrial consumers, including a passenger car maker, and, though price indications are not available, sentiments have been boosted with the withdrawal of all discounted sales in trade channels.
“The outlook for passenger and commercial vehicle sales growth remains robust. This should support the movement of CRC stocks from mills to users,” a Mumbai-based distributor told SteelOrbis.
“However, we do not see much upside potential from current levels in the short term because of continued moderate import pressures. Indian affiliates of South Korean passenger car makers prefer import sourcing for higher grade materials and, coupled with local mills operating at high utilization levels, this will offer headwinds to domestic CRC prices,” he added.
$1 = INR 83.30
