Local Indian cold rolled coil (CRC) prices have moved down for the second consecutive week, losing INR 1,000/mt ($16/mt) in the northern and western region markets during the past week to around INR 41,000/mt ($649/mt) ex-works, as most dealers have sharply reduced fresh bookings, liquidated their stocks and shifted their focus to imports, traders said on Tuesday, April 28.
According to a Mumbai-based trader, negative sentiment has increased so much that prices have slumped despite extremely low trading activity.
The trader said that local steel mills are facing a rise in their CRC inventories, while they are still resisting any adjustments in their base price, prompting local dealers to reduce inventories to a minimum and to meet demand for small volumes through imports.
Market sources said that import pressure on local CRC prices has continued unabated with ex-China CRC offers moving down by another $10/mt week on week to the range of $450-460/mt CFR Mumbai for late June shipments.
The sources said that the volume of import transactions in Mumbai in the western market and in Chennai in southern India saw a marked increase amid the perception that a government decision on antidumping duties on flat steel products is not imminent soon.
$1 = INR 63.20