Local Indian cold rolled coil (CRC) trade prices have recorded slight losses amid a fall in trading activity, but the outlook has remained positive due to reports of robust sales growth from key consuming industries like automotive, packaging materials and consumer durables, SteelOrbis learned from trade and industry circles on Monday, October 24.
Indian benchmark 0.9mm CRC trade prices have softened by INR 200//mt ($2/mt) to INR 65,300/mt ($789/mt) ex-Mumbai and are down INR 500/mt ($6/mt) to INR 64,500/mt ($788/mt) ex-Chennai in the south.
“We don’t see much downside risks to CRC prices from current levels. The marginal downward movement is largely because of trade channels closing down for the festivals. Most consuming industries are reporting strong sales growth and are expected to continue restocking raw materials in the quarters ahead,” a Mumbai-based distributor said.
“At the same time, there could be headwinds from macro-economic negatives like inflation and rising interest rates of lending institutions. Several automobile companies have already announced planned price increases next year. It is to be seen whether this impacts the overall demand situation. The Indian rupee at a historical low against the US dollar will also impact import-based industries, which in turn could check the upside potential for CRC. Hence, we see a wait-and-watch policy among market participants,” he said.
$1 = INR 82.80
