Local Indian cold rolled coil (CRC) prices have stabilized but the mood in the market has remained bearish from the reduced offtake from end-use industries and with re-rollers continuing discounted sales to improve liquidity ahead of the fiscal year-end, SteelOrbis learned from trade and industry circles on Monday, March 11.
Sources said that benchmark 0.9 mm CRC prices are stable at INR 61,200/mt ($739/mt) ex-Mumbai and are unchanged at INR 62,250/mt ($752/mt) ex-Chennai in the south.
According to the sources, prices have stabilized as mills are almost nearing completion of stock liquidation, but the mood in trade circles has remained bearish as large industrial users are still resorting to need-based bookings, while rerollers are still pushing discounted sales at below INR 59,000/mt ($713/mt).
"We expect trade volumes to remain at the current lower levels for some more weeks. The fundamentals of industrial growth are very sluggish, so we do expect the current weak trend to be sustained,” a Mumbai-based distributor told SteelOrbis.
“The national elections to be announced over the next few weeks will bring in political uncertainty and the industry will not be taking big decisions in a hurry. This will keep demand low and prices under pressure. We expect CRC prices to get back on a decline next week,” he said.
$1 = INR 82.80
