Prices in the local Indian cold rolled coil (CRC) market have decreased by INR 1,000/mt ($15/mt) week on week to INR 44,000/mt ($658/mt) ex-works, largely due to the sluggish trading activity ahead of the festival holidays and high stocks at the dealers’ end, traders said on Tuesday, October 25.
“The correction was much expected after the sustained gains recorded by CRC over recent weeks. The downtrend has also been triggered by the approach of the festivals this weekend as dealers have been reluctant to conclude deals ahead of the holidays,” a Mumbai-based trader said.
“Several dealers are also carrying high inventories and had concluded bookings based on exaggerated expecations of demand,” the trader added.
Market sources said that the slackening of booking activity is also the result of several reports indicating that Indian steel mills are taking a second look at hiking base prices this month and there is a possibility that the planned hikes will be postponed until next month.
$1 = INR 66.86