Local Indian cold rolled coil (CRC) prices have remained unchanged for the second consecutive week at INR 45,500/mt ($706/mt) ex-works, but transaction volumes have continued to fall, traders said on Tuesday, June 13.
"Unlike other flat products, no volume discount offers from local steel mills have been heard for CRC. As a result, disappointed dealers are staying away from concluding any fresh bookings as most are already carrying high stocks," a Mumbai-based trader said.
"Moreover, with the reformed Goods and Service Tax regime approaching on July 1, dealers are not risking restocking as there is considerable uncertainty over the valuation of old stocks under the new tax system and over accounting for stocks in transit," the trader added.
At least two other traders said that, even though Indian steel mills have kept their CRC base prices unchanged for current month deliveries, the market is expecting that mills will be compelled to adjust their prices in line with the persisting sluggishness of market conditions and this too is keeping most buyers on the sidelines.
$1 = INR 64.41