CRC shortage across some trading regions spurs possibility for cheaper imported materials.
Coils of specific thickness which find applications in general fabrications and local furniture manufacturing industry are in short supply across some trading regions.
An official of secondary CRC manufacturer while talking to Steel-360 said, “There is a temporary CRC shortage in Maharashtra market.” Prices here traded at a premium. The official further added to say, “We have seen a good volume of orders from Original Equipment Manufacturers and are unable to cater to the needs of the traders as of now.”
Some market sources believe, prices of CRC products manufactured by primary players are trading higher as compared to secondary manufacturers and thus traders are seeking materials from secondary players.
Hyderabad markets too experienced shortage of some specific thickness of Coils. One of the traders here said, “Cold Rolled Coils of thickness 0.6-0.8 mm and that of thickness 1 – 2 mm are in shortage. We are unable to procure these orders from primary manufacturers as some of them are unable to provide us the desired quantity and thus we are looking to book orders from nearby states as well.”
Similarly, CRC shortage was also seen at Chennai market.
“CR Coils of thickness 0.35-0.45 mm are in great demand here as these are consumed by local furniture manufacturing units. We have seen a good demand from these local manufacturing units now and this has forced us to either rely on other states or look for imported materials.”
As per trade sources, if this trend of shortage continues for a longer period, traders may find it lucrative to import their requirements as the exchange rate has appreciated to a 10 months high touching the levels of 58. Market participants speculated that the strengthening of domestic currency will also trigger imports of CRC products.