Local Indian cold rolled coil (CRC) prices have recorded gains of INR 500/mt ($7/mt) during the past week to INR 41,500/mt ($615/mt) ex-works, on the back of sustained buying interest from end-users and restocking by dealers, traders said on Tuesday, May 24.
“Buying interest from end-users has remained strong and has overcame uncertainties over the short-term pricing of local steel mills,” a Mumbai-based trader said.
“There is no clarity in the market on whether local steel mills will effect a second price hike for flat steel products this month. However, this has not prevented dealers from continuing to restock,” he added.
Market sources said that local prices have been consolidating at higher levels since early this month despite uncertainties over the base prices of steel mills, while there is little downside potential from current levels due to sustained buying interest.
According to at least two traders, among flat products, prices of CRC have been rising faster than prices of other products over the past few weeks, unlike the normal situation in the Indian market. It is thought that any possible correction in CRC prices would only be marginal and would not exceed INR 200/mt ($3/mt), against the backdrop of fresh bookings from end-users, the sources added.