Local Indian cold rolled coil (CRC) prices have remained stable over the past week but the ongoing very low trade volumes indicate that the market is not optimistic of an immediate rebound even beyond the current monsoon season, as the overall manufacturing sector is facing a demand depression, SteelOrbis learned from trade and industry circles on Monday, July 20.
Sources said that benchmark 0.9 mm CRC prices are stable at INR 64,300/mt ($666/mt) ex-Mumbai and are also unchanged at INR 65,000/mt ($673/mt) ex-Chennai in the south.
However, the sources said that the recent reduction in base prices announced by mills has failed to improve trade activity, indicating that the negative outlook of market participants will extend beyond the usual monsoon season.
Even discounts or extended credit terms have failed to drive bookings, which is a reflection of demand weakness across industrial users, and the latter are very cautious in restocking raw materials, resulting in a sharp fall in trade volumes in the market, the sources said.
“Every sector is facing inflationary pressures and at the same time is hamstrung in passing on higher costs of production to consumers. This is eroding margins of both raw material and finished product manufacturers. The current negatives go far beyond the usual downturn during the rainy season,” a Mumbai-based distributor said.
$1 = INR 96.45
