Some relief was restored in the market as the continuous falling CRC prices have shown some stability this week. Depreciating currency has been a relief to domestic manufacturers, who were struggling with competitive offers from East Asian countries. CRC prices have corrected by 6-7% between October and December this year.
CR Coils, primarily consumed by the automobile industry and consumer durable industry has not seen any revival in demand. Meanwhile, alluring imported offers from East Asian countries has led to significant correction in domestic prices. Currently, CRC in Chennai is trading at INR 45,000/MT, which was around INR 48,000-48,500/MT in October.
Trade experts believe that falling INR will keep imports stable, which is likely to support domestic prices in the short run. Total imports of CRC in November stood at about 0.12 MnT.
Similarly, demand from CR pipe manufacturing units in Ludhiana has also not seen any signs of recovery. Irate over the falling trading volumes, a trader cited,
“We are not expecting any demand recovery before March. CR Coils in Ludhiana is currently trading at around INR 46,000/MT. Lack of cash in the system has lowered trading activities. Traders are not willing to stock materials due to uncertainty in demand.”
Prices across India had encountered the steepest fall within these 3 months. Rising imports and falling CRC prices in the international market have remained a concern for Indian Steel manufacturers.
Export offers of CRC from CIS countries have fallen by 12-13% between October & December. CRC is currently offered at USD 525/MT FoB Black Sea. Whereas, offers in October stood at USD 610/MT levels.
*Domestic prices are inclusive of ED and VAT extra.
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