Local Indian cold rolled coil (CRC) trade prices have continued to lose ground though at a slower pace amid the uncertain demand outlook from key user industries and trade channels being unsure of the July base pricing trend of mills, SteelOrbis learned from trade and industry circles on Monday, July 4.
Sources said that the benchmark 0.9 mm CRC trade prices is down INR 500/mt($6/mt) to INR 68,500/mt ($867/mt) ex-Mumbai and down INR 300/mt($4/mt) to INR 69,000/mt($873/mt) ex-Chennai in the south.
According to a Mumbai-based steel distributor, there is no clarity yet on July base prices of mills, prompting trade channels to stay away from restocking.
At the same time, the sales growth outlook of automobile manufacturers is also uncertain and there are doubts whether the triple-digit growth in May sales will be sustained going ahead during the traditional low-demand months of the current monsoon season, he said.
Distributing circles said that standalone re-rolling mills are facing a steady rise in inventory levels following the failure to conclude long-term supply agreements with end-users, and at least several such mills in the west have reduced mill output to levels of 50-60 percent on average from 70-75 percent utilization levels at the start of the current fiscal year in April, and this has contributed to easing of the pace of the decline in price.
$1 = INR 79.00
