Local Indian cold rolled coil (CRC) prices have remained stable amid divergent outlooks and the sluggish movement of stocks.
Sources said that benchmark 0.9 mm CRC price is unchanged at INR 60,500/mt ($725/mt) ex-Mumbai and stable at INR 61,500/mt ($737/mt) ex-Chennai in the south.
They said that outlook for the market is very mixed. Some market insiders maintain a bearish outlook following the sharp moderation in sales growth reported by major automobile companies and with re-rollers indicating a slowdown in the lifting of stocks against long-term supply contracts. However, another section of the market has maintained that the current sluggish conditions are cyclical and both prices and trade volumes will improve after the conclusion of the ongoing national elections in June and with economic policy-making gaining focus from a new government.
“There is only need-based procurement by large industrials. No one is inclined to build inventories at a time when there is sufficient material available from producers and end products of industrials are moving slowly. CRC prices will move up but very slowly on supply-side developments, with some mills going in for maintenance shutdowns. But claims of a shortage are largely exaggerated,” a Mumbai-based distributor told SteelOrbis.
“We assess that the shortfall in supplies following the mill shutdowns will not be more than 90,000 mt over May-June and not big enough to have a big impact on the trade price line,” he added.
$1 = INR 83.50