The downward trend in the local Indian cold rolled coil (CRC) market has gained further momentum in the past week, with prices moving down by INR 500/mt ($8/mt) week on week to INR 48,500/mt ($724/mt) ex-works amid ongoing increases in inventories and with steel mills starting to offer discounts on their base prices, traders said on Tuesday, February 21.
"All market participants, dealers and steel mills have been reporting a sharp rise in CRC inventories amid the slowdown in demand and prices have moved down for the second consecutive week as a result. Over the past two weeks, prices have declined by a total of INR 1,000/mt ($15/mt) due to weak market conditions," a Mumbai-based trader said.
"Although steel mills have not made any official announcements, most have started to offer discounts on their listed prices of flat steel products to control rising stock positions," the trader added.
At least two traders said that steel mills like Steel Authority of India Limited are offering discounts as high as INR 2,000/mt ($30/mt) across all flat products to their select high-volume dealers.
Market sources said that, with larger steel mills all reporting higher hot metal production during January and also possibly in the current month, there is a possibility of mills adjusting their March prices if the current increases in inventory continue.
$1 = INR 66.97