Local Indian cold rolled coil (CRC) prices have moved up reacting to base price increases announced by domestic steel mills, but the rises have been limited by comparatively slower stock movements compared to other flat product categories and by cautious restocking seen in trade channels, SteelOrbis learned from trade and industry circles on Monday, October 3.
Sources said that benchmark 0.9 mm CRC trade prices are up by INR 500/mt ($6/mt) to INR 66,200/mt ($813/mt) ex-Mumbai, but have failed to react in southern region, staying at INR 65,800/mt ($808/mt) ex-Chennai.
“Unlike most other flat product categories, CRC trade prices remain almost at a par or at a discount to the new base prices announced by mills, largely because existing stocks are moving comparatively more slowly and trade channels remain cautious in committing fresh bookings,” a Mumbai-based trader said.
“Our assessment is that, though there are very little downside risks to prices from current levels, gains will also be limited by key user industries like automotive still maintaining lower levels of raw material restocking amid slower-than-expected growth in sales,” he said.
However, at least two other traders maintaining a contrarian stance said that intermediaries are awaiting the data on September sales growth of key industries and a positive trend would trigger fresh bookings, providing support for trade prices to seek higher levels.
$1 = INR 81.40