Local Indian cold rolled coil (CRC) prices have seen a correction during the past week, moving down by INR 300/mt ($5/mt) to around INR 48,700/mt ($795/mt) ex-works, amid increased import shipments and slow movement of stocks, traders said on Friday, October 24.
According to a Mumbai-based trader, the correction has been sharper in the southern region, especially around the port town of Chennai where prices have softened by INR 500/mt ($8/mt) as buyers have been concluding bookings of Chinese CRC.
At the same time, current stock movements at dealers have slowed down significantly, with most traders on extended weekend holidays and closing their accounts for the year, he said.
Market sources said that the ex-China CRC price at Mumbai has been $140/mt cheaper than local products since early this month, but pressures has been building up on domestic prices since import volume transactions have been seen to be picking up with local steel mills still reluctant to adjust their base price.
Import volumes are expected to pick up after the extended holiday weekend and market activity will increase after traders return to business next week, the sources added.