Following four weeks of stability, the local Indian cold rolled coil (
CRC) market has in the past week declined by INR 750/mt to INR 47,500/mt ($741/mt) ex-works amid a negative outlook on the prospects for demand, traders said on Tuesday, May 16.
"Clearly, the market has started to react to sustained high prices at a time when there is no positive outlook on the demand front," a Mumbai-based trader said.
"Local
CRC prices are also under pressure from the imminent threat of imports as the appreciation of the Indian currency makes imported
CRC cheaper. Cheaper imports of other flat steel products like HRC have already started to flow in and it is only a matter of time that users of
CRC will also avail of the strong local currency to book overseas shipments," the trader added.
At least two other traders said that the decision of Indian steel mills to keep
CRC prices unchanged for the current month was taken negatively by the market and dealers' prices are moving down in reaction.
On Monday, the Indian rupee strengthened further to INR 64.06 to the US dollar, with currency dealers predicting it would appreciate to INR 63.50 to the dollar in the short term in view of strong dollar inflows.
$1 = INR 64.06