After a brief period of consolidation, prices in the local Indian cold rolled coil (CRC) market have increased by INR 1,500/mt ($23/mt) during the past week to INR 41,500/mt ($624/mt) ex-works, amid sustained buying activity and since steel mills have started to announce price hikes for the current month, traders said on Tuesday, September 6.
While the rises in market prices have been anticipated given the previous consolidation of prices and the prevailing bullish sentiments, the size of the jump in prices has been surprising,” a Mumbai-based trader said.
“Domestic steel mills are reported to be concluding export sales for large volumes of flat products. Inventories at mills too are reported to be at low levels. These factors will continue to provide momentum for prices,” the trader added.
Market sources said that large steel mills have started to announce current month pricing with Steel Authority of India Limited (SAIL) taking the lead by announcing an across-the-board price rise of INR 1,500/mt ($23/mt) for all flat products.
Other producers like JSW Steel and Tata Steel are also expected to announce new prices in course of this week, adding momentum to current price levels, the sources said.
$1 = INR 66.55