Local Indian cold rolled coil (CRC) prices have remained stable amid moderate trade activity and the uncertain outlook in key user industries, SteelOrbis learned from trade and industry circles on Monday, May 13.
Indian benchmark 0.9 mm CRC prices have remained stable at INR 60,500/mt ($725/mt) ex-Mumbai and unchanged at INR 61,500/mt ($737/mt) ex-Chennai in the south.
According to sources, the slowdown in April sales growth reported by automobile majors and the falling demand in specialized steel packaging manufacturing units in the south have dampened sentiments in trade channels, while speculative reports that the ongoing national elections will result in a hung parliament have been making market participants nervous.
“Key user industries are not expected to restock raw materials aggressively in view of the large number of economic and political uncertainties ahead. There is a lot of material floating in the market and the slowdown in supplies from mills planning shutdowns is not expected to have much impact on the price line,” a Mumbai-based distributor said.
“We expect prices to remain range-bound in the absence of any key driver, at least till mid-June when a new government is formed and economic policy making gets attention. Trade channels will be extremely cautious in restocking considering liquidity challenges faced by small and mid-sized distributors,” he said.
$1 = INR 83.50