Local Indian cold rolled coil (CRC) prices have softened over the past week, wiping out modest gains of the previous week, as large industrial users have paused restocking and distributors are facing challenges in keeping stocks moving amid tighter liquidity and buyers seeking discounts to conclude bookings.
Sources said that benchmark 0.9 mm CRC price has lost INR 600/mt ($7/mt) to INR 52,000/mt ($586/mt) ex-Mumbai and is down INR 350/mt ($4/mt) to INR 55,250/mt ($623/mt) ex-Chennai in the south.
According to the sources, while leading consumers like automobile manufacturers were seeing a sharp rebound in demand and sales, they were still cautious in restocking, aggressively denying the market any sustained support.
At the same time, the sources pointed out that the market is still in the oversupply zone, with large mills carrying larger than usual inventories, while on the other hand distributors faced with liquidity tightness have been unable to offer favorable credit terms to buyers, thereby hindering workable trade.
“There has been some improvement in demand from key industries. But the improvement is not sufficient to absorb the excess volumes available down the supply chain. Hence, any upside in price is facing a strong headwind,” a Mumbai-based trader told SteelOrbis.
“With current prices poised to go in either direction, trade or users are pausing immediate bookings,” he added.
$1 = INR 88.65