Prices in the local Indian cold rolled coil (CRC) market have increased for the second consecutive week, moving up by INR 1,000 ($15) week on week to INR 43,000/mt ($647/mt) ex-works, due to the tightening of supplies from local steel mills and expectations of another round of hikes in base prices by the mills, traders said on Tuesday, September 27.
“There is bullish sentiment in the market. This has been fuelled by reports of a significant drawdown in CRC inventories at local steel mills,” a Mumbai-based trader said.
“The most important contributor to lower stocks at mills has been the significant CRC export sales volumes transacted by Indian steel mills for markets in Southeast Asia like Indonesia and Malaysia,” the trader said.
A section of the market said that dealers are experiencing delays in receiving deliveries from steel mills and this is considered as an indication of possible shortages emerging in the market.
At least two traders said that they have received indications from officials at steel mills that the mills will be considering a CRC base price increase of at least INR 1,000 ($15/mt) to boost margins, seizing the opportunity offered by tight supplies.
$1 = INR 66.46