Indian domestic cold rolled coil (CRC) prices have been supported by improved transaction volumes to consolidate at higher levels of around INR 49,000/mt ($821/mt) ex-works, traders said on Thursday, July 10.
"Rather than changes in fundamentals of the market, prices are driven by improved sentiments," a Mumbai-based trader said.
"While no change in off-take is evident from end-users, traders are restocking on the back of revived sentiments," he said.
"CRC demand among end-users in automobile and consumer durable sectors continue to remain depressed. But prices are buoyant on expectations of a significant demand boost from the Indian federal budget placed before parliament on Thursday," the trader said.
"The disinterest in imported CRC and almost negligible transactions during the week have also provided support for local prices," he added.
Indian importers are not interested in import offers at around $640-645 CFR ex-China, as most prefer to wait and assess impact of the budget provisions on the aggregate demand situation before concluding transactions, market sources said.