The local Indian cold rolled coil (CRC) market has come under renewed pressure with buyers continuing to pull out and some re-rollers increasing discounts to liquidate stocks.
Sources said that benchmark 0.9 mm CRC prices have lost INR 1,000/mt ($12/mt) to INR 55,400/mt ($660/mt) ex-Mumbai and are also down INR 1,000/mt ($12/mt) to INR 57,800/mt ($687/mt) ex-Chennai in the south.
According to sources, the biggest source of near distress in the market is emanating from the surge in inventories of automobiles across dealers, particularly passenger cars. This is forcing auto companies to adjust outputs, leading to either cancellation of bookings for CRC or deferment in lifting volumes under long-term contracts with mills and re-rollers.
“Even the festival season approaching is not bringing any cheer to any market participants. The expected demand uptick during October-December is most likely to be either tepid or absent. The mood is very gloomy,” a market insider told SteelOrbis.
$1 = INR 83.90