The local Indian cold rolled coil (CRC) market has showed tentative signs on a revival with traded prices inching up in anticipation of base price increases by producers and a major consuming industry like automobile reporting improvements in supplies of imported components, raising the possibility of fresh steel bookings, SteelOrbis learned from trade and industry circles on Monday, October 18.
The traded CRC price is up INR 600/mt ($8/mt) to INR 75,600-76,600/mt ($1,005-1,019/mt) ex-warehouse for benchmark 0.9 mm thickness on reports that standalone re-rolling mills had commenced dispatches which had earlier been deferred by automobile companies, and the easing of inventory buildups provided support for prices.
The market has also been gaining strength from indications that mills which late last week commenced a second round of base price increases for hot rolled coil (CRC) would follow the same route in the case of CRC, now that stock movements have been improving at mills.
“Automobile manufacturers are returning to the market slowly. The worst of the shortages of imported components and the 30-40 percent decline in September sales may be receding, creating optimism over raw material restocking,” a Mumbai-based distributor said.
“But unlike other segments of flat products like HRC, mills will still be cautious in the case of CRC and any second base price increases in October might be modest. In the current demand scenario, passing on higher input costs is easier in case of the HRC, which is moving faster than CRC,” he said.
“Based on current costs, CRC realizations need to be at least INR 4,000/mt ($53/mt) higher. But how much prices can move up in the short term will be based on our assessment of stock movements,” sources at ArcelorMittal Nippon Steel Limited (AMNS) said.
“Granular demand across product categories is very divergent. Our base pricing hence will need to be very customer-centric,” the sources said.
$1 = INR 75.20