After three weeks of stability, local Indian cold rolled coil (CRC) prices have softened by INR 250/mt ($4/mt) during the past week to INR 41,250/mt ($613/mt) ex-works, traders said on Tuesday, June 21.
“The correction was in line with market expectations after prolonged stagnant conditions. But market activity has continued to remain slack with participants waiting to see if the correction will gain momentum over the next few days,” a Mumbai-based trader said.
“The local market is very delicately poised. With local steel mills expected to maintain July prices unchanged, the correction could also gain momentum with dealers possibly considering a resumption of discounts as inventories are reported to be high,” the trader stated.
“I think discounts of around INR 500/mt ($8/mt) are a distinct possibility or else market activity will continue to languish,” he added.