Local Indian cold rolled coil (CRC) prices have remained stable at around INR 49,000/mt ($817/mt) ex-works during the past week, though transaction volumes have remained low due to uncertainties over import volumes, traders said on Thursday, June 19.
"While ordinarily CRC is among the slower moving flat steel products in the local markets, it is moving even slower amid weak demand since most market intermediaries have already built up large stocks over the past two months," a Mumbai-based trader said.
"Traders are also postponing import bookings in view of the weakening rupee and the anticipated fall in import offers from China and Japan," he added.
Market sources state that the Indian steel mills have announced higher production for the June-July period and so there will be supply-side pressures on prices and, with the weaker rupee making imports expensive, local buyers expect import offers from China and Japan to see a downward adjustment in order to push CRC into India.
The sources said that a few local importers have booked Chinese CRC at around $615/mt CFR Mumbai, but these were for small volumes because of expectations of offers falling to around $600/mt CFR.
Offers for ex-Japan CRC are ranging at around $660/mt CFR Mumbai, but Indian importers are reported to have put in bids $20/mt lower and hence no significant transaction has been reported in the market, source said.