Local Indian cold rolled coil (CRC) prices have remained stable over the past week and, despite low trading activity, the market has been supported by chatter regarding imminent base price increases by mills and the expected sustained demand from key user industries.
Sources said that benchmark 0.9 mm CRC prices have remained unchanged at INR 60,800/mt ($731/mt) ex-Mumbai and stable at INR 60,450/mt ($727/mt) ex-Chennai in the south.
They said that there has been a pause in the steady price increases seen this month largely owing to the holidays and the extended weekend, and prices are expected to resume their uptrend as key users in automotive and industrial packaging resume restocking amid talks of base price hikes by at least INR 1,500/mt ($18/mt) over the next few weeks.
“The domestic market is currently in a tight supply situation. This might change as mills currently under maintenance shutdowns resume operations over the next two to three weeks and more supplies come in. But the excess supply is unlikely to put prices under pressure and it will be absorbed by incremental demand as key industries gear up to increase output for the post-monsoon industrial growth,” a Mumbai-based distributor told SteelOrbis.
$1 = INR 83.10