During the past week, prices in the local Indian cold rolled coil (CRC) market have increased by INR 1,000/mt ($17/mt) to INR 42,000/mt ($659/mt) ex-works, on the back of base price revisions by domestic steel mills and increased buying activity, traders said on Tuesday, August 8.
Market sources said that most of the large Indian steel mills have completed their price revisions for current month deliveries by increasing CRC base prices by INR 1,000-1,500/mt ($17-23/mt).
The sources said that, with international finished steel prices on the rise, Indian steel mills are resorting to an “import parity” pricing regime and dealers have also been quick to adjust their prices to pass on the hike to end-users.
At least two other traders said that, with large steel mills achieving higher volumes and earnings in the export markets, this has enabled them to increase base prices in the local Indian market also.
According to sources, Steel Authority of India Limited has successfully concluded an export transaction for 14,000 mt of CRC for September shipment and this has been taken by the market as an indication of rising opportunities in overseas markets, which would provide support for local CRC prices in the short and medium terms.
$1 = INR 63.74