Local Indian cold rolled coil (
CRC) prices have moved up by INR 500/mt ($7/mt) ex-works during the past week to around INR 35,000/mt ($515/mt) ex-works on the back of improved sentiment in the wake of the imposition of the minimum import price (MIP), traders said on Tuesday, February 9.
"Sentiments have definitely improved with new import protection in place. But the same cannot be said for market volumes as gains in prices came amid very scarce market activity as buyers are unwilling to conclude transactions for large volumes at higher price levels," a Mumbai-based trader said.
"It is not good for the market that prices are gaining on the back of protective measures when demand still does not show any sign of an improvement," he said.
Market sources said that most dealers have been attempting to liquidate stocks in the past few weeks, but are finding it difficult now with rising prices and few buyers, and sources have not ruled out the resumption of aggressive discounting by dealers to reduce inventories.
Expressing doubts over whether the higher
CRC prices levels will be sustained, some traders have said that local buyers prefer to wait for fresh import offers after the Chinese New Year holiday and any sharp cut in import offers could be the trigger for a correction of local
CRC prices.