Local Indian cold rolled coil (CRC) prices have surged over the past week in reaction to three rapid consecutive base price hikes by mills and some panic buying in western regional market amid reports that some re-rolling mills are cutting back production faced with shortages of natural gas needed for annealing processes.
Sources said that benchmark 0.9 mm CRC prices have surged INR 2,000/mt ($22/mt) to INR 63,000/mt ($665/mt) ex-Mumbai and are up INR 1,000/mt ($11/mt) to INR 66,000/mt ($697/mt) ex-Chennai in the south.
According to the sources, while large industrial buyers have continued with only need-based bookings, a section of large distributors are heard to be resorting to panic buying on reports that a few large standalone re-rolling mills in the west are planning production cutbacks due to disruptions in natural gas supplies.
Some in trade circles said that the market expects another round of base price increases in early April anticipated to be at least INR 1,000/mt ($11/mt), further risking trade activity.
“Overall trade activity remains muted owing to year-end considerations and expectations of dampened growth prospects as inflationary pressures rise in the economy. Whatever higher prices we are seeing are the result of a cost push and tightening supplies, while demand remains low to moderate,” a Mumbai-based distributor said.
$1 = INR 94.52
