Prices in the local Indian cold rolled coil (
CRC) market have remained stable during the past week at INR 47,000/mt ($720/mt) ex-works, amid low trading activity with buyers awaiting pricing signals from local steel mills, traders said on March 21.
"The market is in suspense. Current price levels could move in either direction. Buyers do not have any appetite in view of sluggish demand. Dealers are saddled with large inventories. At the same time, local steel mills are reported to be considering a base price hike soon," a Mumbai-based trader said.
"The market dynamics are very conflicting and with prices on a knife edge, while dealers have largely stayed away from the market during the past week," the trader added.
Market sources said local steel mills had kept their base price unchanged for the past two months and this situation is expected to change this month or early next month.
Most steel mills are reported to be keen to pass on increases in input costs to buyers, but are taking time in view of the already high inventories held by all market participants, market sources said.
However, at least two traders said that they are sure of an imminent base price increase by steel mills but dealers are in no rush to raise their prices ahead of the expected price hikes as they are already carrying sufficient stocks, and this has resulted in a temporary stalemate in market conditions.
$1 = INR 65.30