Local Indian cold rolled coil (CRC) prices have remained stable during the past week at around INR 39,500/mt ($622/mt) ex-works amid reduced import transaction activity, traders said on Tuesday, June 23.
According to a Mumbai-based trader, there has been a sharp fall in the number of import transactions concluded during the past week, in reaction to the recent increase in flat product import duty to 10 percent announced by the Indian government, up from the previous 7.5 percent. The trader said that, with local steel mills very likely to defer any price adjustments in the short term, prices have found support and the falling trend has been checked.
However, trading conditions have remained dull with dealers unwilling to make fresh bookings, local or imported, as no uptick in demand is expected, nor have they been willing to carry high-priced stocks, he added.
On the other hand, a section of market sources have maintained that the higher import duty might not provide sufficient support for local CRC prices in the medium term.
These sources said that, with the Indian rupee strengthening to 63.52 to the dollar, any further appreciation and a lowering of offer prices from China could trigger a revival of interest in imports.
Lack of demand would put strict limits on the upside potential of local prices, while downside risks continue amid the expected revival of imports, the sources added.