Indian CRC Prices hit 12 Months Low

Cold Rolled Coil prices have hit 12 months low and fell below INR 45,000/MT levels. Talking to traders across India, SteelMint learnt that CR Coils are offered at around INR 44,500/MT in some regions.

A Chennai based trader confirmed that domestic price of CRC (0.7 & above) has declined by INR 400-500/MT and currently trading at INR 44,500-45,000/MT. Some market participants also quoted, offers for CRC in the range of INR 43,500-44,000/MT. However, these offers could not be confirmed from official sources.

A Dealer said, “Recovery of demand is the key concern for the traders here. Unless project activities kick start in full swing, it is difficult to arrest this fall in CRC prices. CRC consumers are finding it difficult to meet their credit obligations, which has seriously affected the payments of traders.”   

Market experts view that automobile sales may be under pressure in the upcoming month owing to the recent price hikes and this may subsequently slowdown steel demand from auto industry. Some stability in demand was seen from Pipes and Tube segment, which is likely to drive sales in the short run.

Trading activities in Delhi remain muted on the backdrop of poor demand this week. Prices corrected by INR 400/MT this week. CRC is trading at INR 45,600/MT in Delhi & NCR. Some prime grade CRC was offered at INR 47,500/MT. Traders and dealers are not holding surplus inventory at current prices due to lack of demand.

Similarly, CR Coil prices have corrected by INR 300-500/MT in Ahmedabad. CRC of 0.7 mm and above thickness is being offered at INR 45,500-45,700/MT.

Gloomy Export Market

Domestic steel manufacturers are quite worried about this declining price trend. The international market has also not been quiet favorable for Indian exporters since global CRC prices have also corrected since 30 Dec, 2014.

Export price of CRC in Western Europe (CIF basis) has declined by USD 15/MT between 30 Dec’14 and 7 Jan’15. Current offer for CRC is USD 541/MT, CIF West Europe.

With the slowdown in domestic demand and falling global prices, manufacturers may find it difficult to keep their margins from shrinking.

*Prices are inclusive of ED, VAT extra