Local Indian cold rolled coil (CRC) prices have declined sharply during the past week by around INR 1,000/mt ($14/mt) to INR 34,500/mt ($509/mt) ex-works amid aggressive stock liquidation by dealers, traders said on Tuesday, February 2.
“Most market participants had got their restocking plans wrong last month, anticipating increased import protection which did not come about,” a Mumbai-based trader said.
“Most dealers are carrying too much stock in a slow moving market. Their stock liquidation now has triggered a correction,” the trader added.
Although no significant import transaction has been reported in the market during the week, sources said that the market has discounted any further government import protection measures and that it is a just matter of time before fresh import activity resumes and local CRC prices are also reacting to this.