Local Indian cold rolled coil (CRC) prices have remained unchanged for the sixth consecutive week at INR 51,000/mt ($732/mt) ex-works amid further fall in trading volume and lack of direction in the market, traders said on Tuesday, August 21.
“Key drivers are not showing any indication either direction, leading to one prolonged stagnant market condition,” a Mumbai-based trader said.
“Local steel mills are carrying high inventories but they are not adjusting domestic CRC offers to push volumes into the market. At the same time, dealers and end-users are lacking the confidence to increase commitments in view of the sluggish demand and lack of short term trend indications leading to no movement in the market,” the trader added.
According to an industrial analyst with Mumbai-based financial advisory firm, there has not been any significant export thrust from any of the large steel mills considering that the Indian rupee has depreciated to an all-time low. At the same time, the weak rupee ensuring import protection is being largely ignored by the market, indicating fundamental negative outlook of the manufacturing sector causing stagnancy in the market.
The same market source said that the next key to market movement will be the base price announcements by local steel mills for September deliveries and market participants are unlikely to take any position in the market before such pricing indications.
$1 = INR 69.67