Cold rolled steel prices remain stable as manufacturers restrained from increasing prices this month. The positive sentiment in the manufacturing sector has not been able to lift up the demand for CRC products, except from the automobile sector, which has shown a positive recovery.
Pipes & Tube manufacturing units in Ludhiana have not seen any revival of demand as such. Flat Steel traders expressed concern for supply shortage in the region, as some mills here are believed to have imported baby Coils for captive consumption.
CR Coils of 0.9 mm thickness are trading at INR 49,500-50,500/MT. As per local traders, CRC from SAIL is in short supply. Whereas, inventory of other manufacturer like Tata is said to be quite healthy in this region.
Market in Delhi too remains dull. Tightened supply and extended delivery period have affected consumers. CRC in Delhi and NCR region is trading at around INR 50,000-50,500/MT. Similarly, market in Ahmedabad too showed no signs of improvement. Domestic CR Coils are trading at INR 50,500/MT. Whereas, imported prime CR Coils are trading at INR 50,000/MT. Poor demand forced traders to offer discount to the tune of INR 250-300/MT for prime customers.
Although, cheaper imports had been a concern for domestic players, demand in the domestic market has not been able to entice traders to book any advance position.
One of the traders based in Chennai said, “Clearing payment from customers is the biggest concern for us now. Huge capital is locked in because of delay in payment. Import offers are quite feasible for us but we are not booking any material as of now since demand from our key customers hasn’t improved yet. We don’t expect volumes to recover before October.”
Minor orders are seen from furniture manufacturing and local fabricators. It is for this, there is a demand for thinner CR products between 0.30-0.40 mm. Demand from government projects is yet to see any appreciation.
One of the MoU holders of SAIL based in Hyderabad expressed his concern for restricted supply of CRC products. “There are some specific requirement of customers for CR products based on their thickness and specific applications. But due to supply constraints, we are unable to meet this demand of our customers,” said this MoU holder.
Import Offers
Meanwhile, it is learnt from market sources that CRC offers from China have seen mild correction to the tune of USD 2-5/MT. Currently, imported CRC from China is at USD 605-610/MT CFR India. Importers apprehend that prices in the international market are likely to soften further owing to subdued demand.
Note: All prices in INR mentioned above are inclusive of ED, taxes extra.
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