Local Indian cold rolled coil (CRC) have remained largely stable with large industrial users continuing to book moderate volumes even as some re-rollers in the southern region adjusted prices downwards for inventory management purposes, SteelOrbis learned from trade and industry circles on Monday, April 21.
Sources said that benchmark 0.9 mm CRC prices are unchanged in the range of INR 57,700-59,500/mt ($679-700/mt) ex-warehouse. While the price at the highest end of the range is effective ex-Chennai in the south, some bookings in this region were reported lower at INR 58,500/mt ($688), attributed to inventory management by few standalone re-rollers.
According to the sources, automobile manufacturing majors have been optimistic of buyers absorbing price hikes effective April 1 and have slightly more confidence on the outlook, enabling them to sustain raw material restocking in moderate volumes.
“The automobile sector is hoping that the worst in terms of sales growth may be over and hence restocking raw materials in moderate volumes is offering price support. However, there is need for caution because inventories at re-rollers have balanced out over the past weekend and may be on the rise leading to talk of stray bookings at discounts,” a Mumbai-based distributor said.
“However, we do not see any significant upside potential of the current price trend and the market will remain range-bound awaiting fresh drivers,” he added.
$1 = INR 85.00
