Local Indian cold rolled coil (CRC) prices have remained stable during the past week at INR 43,500/mt ($678/mt) ex-works, while market activity has dipped with participants awaiting price signals from Indian steel mills.
Sources said that local steel mills are considering a CRC base price increase in the range of INR 1,000-1,500/mt ($16-23/mt). However, considering the hectic buying activity last month, most dealers are carrying high inventories against the backdrop of slow buying by end-users and so dealers are in no rush to conclude fresh bookings ahead of base price revisions, the sources added.
“There are apprehensions in the market that, given the slowdown at manufacturing and end-use plants, the market will not be able to absorb steady increases in base prices. And under such circumstances, I would think that dealers would have little option but to revive discounting to keep stocks moving in the market,” a Mumbai-based trader said.
$1 = INR 64.13