Losses in local Indian cold rolled coil (CRC) market have gained momentum for the second consecutive week with prices moving down by INR 1,000/mt to INR 46,500/mt ($719/mt) ex-works as sentiments in the market was negatively impacted by overall demand weakening, traders said on Tuesday, May 23.
"The very fact that local CRC prices have lost about $27/mt in the past two consecutive weeks is a concern for the market. Market participants are worried that the weakening of demand and off-take by end-users and high base prices maintained by local steel mills is a big discrepancy," a Mumbai-based trader said.
"CRC prices are also under pressure from imports which are becoming cheaper in reaction to combined factors of lower Chinese offers and steadily appreciating rupee," the trader added.
Sources said that most dealers have reduced their fresh bookings to a bare minimum, expecting local steel mills to adjust their base prices although at least two traders discounted such a possibility as producers are persisting with claims of rising input costs.
$1 = INR 64.69