Local Indian local cold rolled coil (CRC) trade prices have showed no change despite the mid-month base price increases effected by mills, indicating the inherent weakness in key consuming industries and weak expectations of a demand rebound in the coming months even as both trade channels and user sectors have remained cautious in committing fresh bookings, SteelOrbis learned from trade and industry circles on Monday, September 19.
Indian benchmark 0.9 mm CRC trade prices have remained at INR 65,700/mt ($823/mt) ex-Mumbai and unchanged at INR 65,800/mt ($825/mt) ex-Chennai in the south.
“Unlike other categories in flat products, CRC trade prices remain at a slight discount even after mills increased base prices. This is largely because of the market and user industries like automobiles tempering their expectations as regards festival season demand spikes and hence new bookings remain cautious,” a Mumbai-based distributor said.
“Mill-to--industry stock movement remains sluggish and even expectations of further increases in base prices in October are not inducing fresh buying. Our assessment going forward is for range-bound prices amid sluggish stock movement,” he said.
Sources pointed out that, even though it was taken as an “isolated” case, at least one standalone re-rolling mill reported one of its buyers in a long-term contract has deferred scheduled September delivery, citing “plant issues”, which, however, has impacted sentiments in the market as the volume in question was on the larger side.
$1 = INR 79.80