Local Indian cold rolled coil (CRC) prices have remained stable during the past week at RMB 41,000/mt ($643/mt) ex-works against the backdrop of a rise in new bookings by dealers and a further fall in interest in imports, traders said on Tuesday, May 19.
According to a Mumbai-based trader, having sharply reduced their inventories over the past month by offering discounts, most intermediaries have been back in the market to make fresh purchases.
The trader said that transaction volumes have also increased because the market did not see the possibility of local mills adjusting base prices.
Market sources said that there has been a significant drop in interest in imported CRC and no significant import transactions have been reported during the past week. Offers for ex-China CRC moved up by about $10/mt to the range of $470-480/mt CFR Mumbai but failed to attract any buyers, the sources said.
"With the Indian rupee showing signs of staying weaker than the RMB 63 to the dollar mark, import offers do not make sense to most traders and the latter have been reluctant to carry high stocks and instead have preferred to meet the still tepid demand through local flat steel products," another trader added.
$1 = RMB 63.68