In a trend reversal, fresh pressures have emerged in the local Indian cold rolled coil (CRC) market with prices declining by INR 200/mt ($3/mt) in the past week to INR 38,600/mt ($578/mt) ex-works, with the market ignoring reports of flat product price hikes by local steel mills, reflecting the deepening of negative sentiments in relation to the demand situation, traders said on Tuesday, August 16.
Market sources said that at least two large steel mills have hiked their flat product base prices by around INR 500/mt ($7/mt) but this could not be confirmed from the steel mills, while at least two other traders have said that they have not had official communication from the steel companies.
“Euphoria over the imposition of import protection levies such as safeguard duty and antidumping duty has clearly evaporated from the market. Prices are under pressure even amid unconfirmed reports of price increases by a few steel mills,” a Mumbai-based trader said.
According to another trader, most dealers are carrying high inventories in specific markets, with dealers in the west forced to offer discounts of around INR 500/mt ($7/mt) and in the event of any “official” price increase by local steel mills market participants would be forced to absorb the increase at the expense of their margins, in order to keep pushing volumes into the market.
$1= INR 66.78