Local Indian cold rolled coil (CRC) prices have remained stable at around INR 39,000/mt ($614/mt) ex-works, amid sluggish trading conditions and cautious buying, traders said on Tuesday, July 14.
“There has been no significant direction in the market during the past week even though the market situation remains depressed,” a Mumbai-based trader said.
“Local prices have been maintained due to the decision of local mills to hold base CRC prices stable and due to fewer-than-anticipated import transactions reported in the market,” the trader added.
However, some sources said that, after losses in CRC prices early in the month, the market has been taking a break awaiting a new short-term direction.
The sources said a number of buyers have deferred import transactions amid speculation that the government would increase the import duty on flat products to 15 percent, which would be the second increase in less than a month. The import duty was increased from 7.5 percent to 10 percent last month.
The sources said that it is only a matter of time before local prices once again come under pressures from imports since the rising trend of inward shipments is unlikely to ease despite higher import duties.
According to data released on Monday, July 13, Indian steel imports increased by 53 percent year on year during April-June this year to 2.14 million mt. Sources said that increased imports had actually contributed to the seven percent year-on-year rise in steel consumption to 20 million mt during the period and the persistent increase in import duties to protect domestic steel mills might be counter-productive and depress consumption.