Local Indian cold rolled coil (CRC) prices have remained stable over the past week, but the market mood has remained bearish amid low trade volumes, with large industrial users resorting to only need-based bookings and with producers having very limited scope to pass on the rising cost of production to buyers, SteelOrbis learned from trade and industry circles on Monday, June 8.
Sources said that benchmark 0.9 mm CRC prices are stable at INR 64,500/mt ($676/mt) ex-Mumbai and unchanged at INR 65,400/mt ($686/mt) ex-Chennai in the south.
According to the sources, major consumers like the automobile industry are facing challenges in demand growth as reflected in moderating sales of passenger cars month on month, in the wake of rising energy costs and hikes announced in prices of cars across various categories.
“Prices are holding ground largely because large re-rollers have completed stock liquidation, easing supply-side pressure somewhat. But there is very limited upside potential as demand is weak, with no positive driver on the horizon,” a Mumbai-based distributor said.
“The major challenge facing the market is that, on the one hand, a demand depression is looming while, on the other hand, producers are unable to pass on the rising cost of production to the market. The current stability may be short-lived under these factors,” he added.
$1 = INR 95.25
