Local Indian cold rolled coil (CRC) prices have remained at around INR 49,000/mt ($815/mt) ex-works during the past week, as buyers have adopted a wait-and-watch policy on domestic and import pricing, traders said on Thursday, June 26.
According to a Mumbai-based trader, domestic mills have been expected to adjust prices next month to factor in higher raw material costs like iron ore and the 6.5 percent hike in railway freight charges.
However, market intermediaries have been in no hurry to conclude fresh bookings since most are carrying high inventories as off-take from user industries has continued to be slow, he added.
Market sources said that no significant import transactions have been reported since the fall in offers or discounts for Japanese and Chinese origin CRC has not matched expectations.
With the Indian currency continuing to remain above the INR 60 to a dollar level, import offers would need to be lowered by at least $20/mt from current levels to ensure sufficient margins for importing traders, the sources said.
CRC import offers have been reported at $665/mt CFR ex-Japan and $615/mt ex-China net of discounts averaging $10/mt, but these levels would not ensure viable margins at the current rupee exchange rate, the sources said.