Local Indian cold rolled coil (CRC) prices have gained INR 2,500/mt ($38/mt) during the past week to INR 41,000/mt ($ 616/mt) ex-works, with local steel mills hiking their base prices and amid aggressive restocking by dealers, traders said on Tuesday, May 10.
Market sources said that, while local steel mills hiked their CRC prices by INR 1,000-1,500/mt ($15-22/mt), the price surge at the dealers’ end has been sharper on the back of the rise in restocking operations and with the markets rife with speculation that local mills are considering a second price increase later this month.
“The market was taken by surprise by CRC prices moving above the INR 41,000/mt mark, triggering frantic bookings,” a Mumbai-based trader said.
“Although there have been almost zero import shipments of CRC for the past several months, local mills are benchmarking their domestic prices to the rising international prices of flat steel products and so they still have had some headroom for further hikes in base prices,” the trader added.
At least two traders said that there have been unofficial indications from two large local steel mills that flat product prices could be increased by another INR 500/mt ($7.5/mt) before the end of the current month as inventories at the mills are at low levels.