Local Indian cold rolled coil (CRC) trade prices have remained unchanged over the past week in the absence of any demand boost from user industries - an exception amid robust trade and price gains in most other flat product categories - SteelOrbis learned from trade and industry circles on Monday, September 26.
Indian benchmark 0.9 mm CRC trade prices have remained stable at INR 65,700/mt ($810/mt) ex-Mumbai and at INR 65,800/mt ($811/mt) ex-Chennai in the south.
Most market participants said CRC prices were the exception to the overall bullish sentiments in the flats markets, largely because of concerns over the automobile sector’s ability to achieve high growth rates during the festival season.
They pointed out that bookings by automobile majors have remained sluggish and sector analysts are predicting lower sales growth as the surge in inflationary pressures will prompt consumers to tighten discretionary spendings.
“We are expecting CRC prices to remain rangebound in the near term. Trade channels are cautious in restocking, while standalone re-rolling mills are offloading inventories at slight discounts,” a Mumbai-based distributor said.
“However, despite sluggish stock movements and prices, mills are still expected to push for higher base prices in October claiming a rise in input costs,” he said.
$1 = INR 81.10