Local Indian cold rolled coil (
CRC) prices have remained stable during the past week at around INR 38,700/mt ($593/mt) ex-works even though steel mills have increased their flat product prices, traders said on Tuesday, October 6.
"Most of the large mills have increased their flat steel prices by INR 500-700/mt ($7.60-11/mt). But the hike has not been reflected by dealers, most of whom have kept their prices stable amid persistent low demand and due to slow stock movements," a Mumbai-based trader said.
"Most dealers have held back from buying in fresh volumes," the trader said.
"Dealers have also kept their price levels stable as they are unsure of short-term import trends which could go in either direction," he added.
Market sources said that ex-China
CRC offers have declined by about $5/mt to the range of $335-340/mt CFR Mumbai for November shipment but importers have been reluctant to conclude transactions awaiting indications whether the market will absorb the price increases made by local mills.
The sources said that another $5-10/mt adjustment in import offers and a fall in current inventory levels could trigger increased interest in imported
CRC among end-users.
At the same time, with the Indian rupee showing signs of appreciating to around INR 65.30 to the US dollar, any further adjustments in import offers will improve inward shipment volumes, the sources added.