Indian domestic cold rolled coil (
CRC) prices have remained unchanged during the past week at around INR 49,500/mt ($806/mt) ex-works, amidst dull market conditions and uncertainties over local steel mills' pricing strategy, traders said on Thursday, August 7.
"The expected demand and volume pick-up has failed to materialize. Dealers are not in a mood to build up stocks even though supplies are tight in the southern and western Indian markets," a Mumbai-based trader said.
"Local steel mills have been contemplating an increase in flat product prices but no official announcement has been made so far. But a price increase amid the current low demand in the market is unacceptable," he said.
"
CRC prices are holding out on very low volumes essentially because of supply issues in some regions owing to transportation problems. Market fundamentals continue to be weak and uncertainties over price increases by steel mills have forced dealers to adopt a wait-and-watch policy," he added.
Market sources said that interest in imported
CRC has also been waning owing to the weak Indian currency and the reluctance of Chinese exporters to adjust offers even though they have been unable to push volumes into the US market.
Local Indian importers have turned down Chinese
CRC import offers in the range of $590-600/mt FOB since the Indian rupee has been weak, falling to a five-month low at INR 61.49 to a dollar, scaring away importers, sources said.