Pressures have mounted on local Indian cold rolled coil (CRC) prices in reaction to low bulk bookings by major consuming sectors, the near absence of restocking by trade channels, and sustained imports, SteelOrbis learned from trade and industry circles on Monday, July 3.
More specifically, benchmark 0.9 mm CRC prices have lost INR 500/mt ($6/mt) to INR 59,100/mt ($720/mt) ex-Mumbai and are down INR 750/mt ($9/mt) to INR 58,000/mt ($706/mt) ex-Chennai in the south.
The sources said that reports of import bookings of an estimated 40,000 mt in total of ex- South Korea CRC by industrial users at lower prices over the past week have dampened sentiments and prices in the local market.
“Leading manufacturers in CRC consuming industries are adopting a cautious approach in raw material restocking as they prepare their assembly lines for the traditional festive season sales spike in the September-November period. Inflationary pressures, the rising cost of consumer finance, and increases in finished product prices are expected to weigh on the festive season sales ahead and manufacturers are conservative in building raw material inventories,” a Mumbai-based distributor said.
“Mills are also expected to either maintain July base prices or even go in for a modest increase and thereby trade conditions can be expected to remain moribund,” he added.
$1 = INR 82.10
