Local Indian cold rolled coil (CRC) trade prices have remained stable with significant upside potential seen by producers following reports of a robust growth forecast from the automobile industry and an expected surge in bookings, SteelOrbis learned from trade and industry circles on Monday, October 31.
Sources said that, while trade prices for benchmark 0.9 mm CRC have remained unchanged at INR 65,300/mt ($792/mt) ex-Mumbai and INR 64,500/mt ($782/mt) ex-Chennai in the south, sharp increases are expected with the passenger car industry forecasting an eight percent sales growth by the end of the fiscal year 2022-23, the highest since 2018-19.
The optimism among passenger car makers is based on sales of 1.93 million units in the first half of the current year, and the highest-ever half-year sales amid reports that some standalone re-rolling mills are seeking re-negotiation of prices in long-term supply contracts for the October-December period.
“After sustained sluggishness, the mood in the CRC trade is turning very bullish. Prices are expected to surge and mills are expected to increase base prices riding on the sharp rise in bookings from key user industries like automobiles. Trade channels are also expected to see a tightening of supplies, supporting prices at higher levels,” a Mumbai-based distributor said.
“Buyers are likely to face demands of upward revisions of their January-March long-term supply contracts from standalone re-rolling mills. In fact, most passenger car makers have already announced hikes in car prices starting January,” he said.
$1 = INR 82.50