Indian cold rolled coil (CRC) prices have remained stable over the past week and have not reacted to reports of several mills being due to undergo maintenance shutdowns, as the market expects existing inventories at mills and rerollers to offset the shortfall in fresh supplies from producers.
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.
They said that, even with the rolling mills of Tata Steel and Steel Authority of India Limited (SAIL) already slated to go in for shutdowns in the April-June period, rerolling mills which had recently concluded long-term supply contracts have planned their inventories well in order to offset any potential shortfalls following the shutdowns.
“CRC prices are expected to remain range-bound as the key drivers remain weak. The next trigger will come from politics after the ongoing national elections are over and a new government takes charge, and the market is waiting to see the economic thrust of the government,” a Mumbai-based distributor said.
“Large industries like automobile are holding back fresh bookings in the spot market, waiting for cues from demand and government policies. Trade channels are also facing liquidity challenges in securing bank credit, inhibiting restocking,” he added.
$1 = INR 83.50
