Local Indian cold rolled coil (CRC) prices have increased by INR 2,000/mt during the past week to INR 45,500/mt($713/mt) ex-works, as domestic steel mills have commenced base price revision for current month deliveries, traders said on Tuesday, September 12.
Market sources said that two of the large Indian mills have increased their CRC base prices by INR 2,000-2,500/mt($31-39/mt) and other mills are expected to follow suit over the next few days.
The sources said that despite carrying high inventories, dealers have been quick to reflect the increases to their offers even though domestic off-take among end users has continued to remain sluggish.
“Local steel mills are willing to adopt aggressive pricing policy in domestic market, riding on high volume export shipments and strengthening of international finished steel products” a Mumbai based trader said.
“Market reaction to the second price hike in two consecutive months is uncertain. But I feel that given demand situation, the market is in no position of absorb steady rise in domestic CRC prices and risk will be further fall in transaction volumes and rising inventories with market participants” the trader added.
$1 = INR 63.96