Local Indian cold rolled coil (CRC) trade prices have remained stable, finding support from reports of a few standalone re-rolling mills successfully concluding long-term supply contracts with user industries and the expected slight tightening of supplies as some mills bring forward annual maintenance shutdowns, SteelOrbis learned from trade and industry circles on Monday, July 25.
Indian benchmark 0.9 mm CRC trade prices are stable at INR 68,000/mt ($850/mt) ex- Mumbai and are unchanged at INR 68,500/mt ($856/mt) ex-Chennai in the south.
According to sources, at least three large capacity re-rolling mills have reported successful conclusions of long-term supply contracts with major automobile manufacturing companies starting in the October-December quarter. This, coupled with planned annual shut-downs of some integrated mills, is prompting a tight supply outlook, providing support for prices.
“Trade activity may be slow, but prices are holding up. We assess that, with mills expected to either maintain or make marginal changes to August base prices, CRC prices will remain range-bound in the medium term,” a steel sector analyst with a Mumbai-based financial advisory firm said.
“September-October festival sales are expected to be robust from passenger car manufacturers and, coupled with the successful conclusion of long-term supply contracts will ensure modest support for prices and minimize downside risks going forward,” he said.
$1 = INR 80.00
