Local Indian cold rolled coil (CRC) prices have increased slightly following the hikes in base prices effected for November by large mills, but actual booking prices from distributors have remained at discounts amid the pessimistic outlook in key user industries and the slow pace of trade.
Sources said that 0.9 mm benchmark CRC prices have officially been increased to around INR 57,000-58,000/mt ($676-687/mt) ex-works, but trade prices net of discounts have been reported at INR 55,000/mt ($651/mt) ex-Mumbai and INR 56,000/mt ($664/mt) ex-Chennai, almost the same as seen in the earlier week.
The sources said that inventories held by market intermediaries are still on the higher side. The pessimistic outlook in key user industries like automotive has resulted in very low trade volumes, prompting distributors to continue to push sales at a discount.
It has been pointed out that, while vehicle sales improved significantly in October, much of the higher sale volume was from existing inventories at dealers, and manufacturers were still operating assembly lines at lower rates, indicating that users will continue to be cautious in committing fresh bookings.
$1 = INR 84.37