Local Indian cold rolled coil (CRC) traded prices have remained unchanged over the past week amid slow stock movement, as restocking by key user industries like automotive is not expected to see big improvements since the domestic sales growth outlook remains flat and the spread with hot rolled coil (HRC) has narrowed even further, SteelOrbis learned from trade and industry circles on Monday, February 14.
The CRC traded price has remained at INR 70,400/mt ($934/mt) ex-Mumbai and INR 70,000/mt ($928/mt) ex-Chennai in the south.
“With spreads in trade prices narrowing, following faster price increases for HRC compared to CRC, mills’ realizations from HRC are significantly higher and, with a rapid drawdown in stocks, captive re-rolling mills’ utilization levels are being kept at lower levels,” a Mumbai-based distributor said.
“Most large automobile companies are reporting declines in dispatches to retail trade, and hence an improvement in restocking of raw material is not expected in the medium term. CRC prices will not face any negative corrections, and so we will see high prices and slow stock movement for now,” he said.
At least two traders said that CRC base prices could be increased by at least INR 500/mt ($7/mt) in tandem with mills’ expected hike in HRC base prices by at least INR 1,000/mt($14/mt) in February triggering a further slowdown in trading conditions in the absence of a commensurate improvement in demand.
$1 = INR 75.40