Domestic CRC prices in have witnessed a steep hike of upto INR 3,000/t ($41) w-o-w. In western and southern India prices have risen by INR 1,500-2,000/t and by INR 2,500-3,000/t in northern India on a weekly basis.
“Shortage of CRC and increased demand from the auto segment resulted in a steep hike in CRC prices”, highlighted major distributors based in Mumbai and Faridabad regions.
SteelMint price assessments domestic CRC (0.9 mm IS513 GR) stands at INR 47,500-49,000/t (ex-Mumbai), INR 50,000-50,500/t (ex-Delhi) and INR 48,000-48,500/t (ex-Chennai). The prices mentioned above do not include 18% GST.
HRC-CRC spread widens – Notably, spreads between HRC and CRC have risen by around INR 7,000-8,000/t due to the demand-supply mismatch. In general, the difference between the two used to remain around INR 4,500-5,000/t.
Domestic HRC prices exhibited mixed responses on a weekly basis. In Mumbai, trade prices fell slightly in limited trades. However, in other regions prices moved up by INR 750-1000/t on short supply.
As per SteelMint price assessment HRC (IS 2062, 2.5 – 8mm) prices stand at INR 41,000-42,000/t (ex-Mumbai), INR 41,000-42,000/t (ex-Delhi) while INR 41,500-42,250/t (ex-Chennai). The prices mentioned above do not include 18% GST
Recovery in demand from auto sector – Maruti Suzuki India Limited (MSIL), India’s largest car seller, has reported 17.1% (y-o-y) growth in its August sales at 124,624 against 106,413 units in Aug’19. The company has reported a 15.3% growth m-o-m as compared to 108,064 units in Jul ’20. Passenger vehicle sales performed better than other segments apart from tractors which once again showed growth for the second consecutive month. Also, with the start of the festive season and easing of lockdown restrictions, auto sector demand may show some improvement in the coming months.
In addition to recovery from auto sector, other factors which have supported price gains are planned maintenance shutdowns at few mills due to tightness in raw material availability.
Outlook- Market sources shared with SteelMint that Indian mills may further raise HRC & CRC prices by INR 1000-1500/t on short supply and improved sales in the domestic market.
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