Indian local cold rolled coil (CRC) traded prices have remained stable during the past week amid the negative outlook from the possibilities of rising import competition and of the decline in auto sales persisting in the current quarter, SteelOrbis learned from trade and industry circles on Monday, January 17.
The trade price for 0.9 mm benchmark CRC has remained unchanged at INR 66,000-66,500/mt ($890-897/mt) ex-Mumbai and at INR 65,500/mt ($883/mt) ex-warehouse in the southern regional market of Chennai.
“The extended decline in prices halted over the past week but the outlook continues to be negative. Wholesale passenger car despatches from manufacturers declined 13 percent in December and with the trend unlikely to be reversed in the current quarter raw material bookings too will remain cautious and with a resultant rise in inventories particularly with standalone re-rolling mills with long-term supply contracts,” a Mumbai-based steel distributor said.
“The government has also rescinded antidumping duties on CRC imports from China, Japan, South Korea and Ukraine. We hear that, in the wake of this, a number of user companies are re-drawing their raw material sourcing, with higher reliance on imports. This can put supply-side pressures on prices too,” he said.
Trade circles said that distributors and standalone re-rolling mills are awaiting a new pricing trend to emerge, factoring in indicative levels of import volumes in the coming months, leading to a lack of activity in the market.
$1 = INR 74.15
