Local Indian cold rolled coil (CRC) prices have increased by INR 500/mt during the past week to INR 47,500/mt ($745/mt) ex-works, in anticipation of a price hike by local steel mills next week, traders said on Tuesday, January 30.
“A base price hike by local mills is inevitable next week and the market has factored it in. Dealers are making fresh bookings as there is little possibility of any price corrections,” a Mumbai-based trader said.
Sources said that, with the government announcing that it will aggressively push for long-term antidumping duties on finished steel products and with the national budget later this week expected to increase customs duty across finished steel products, this will offer enough protection to enable Indian steel mills to make an aggressive price revision for February deliveries.
The sources said that the Indian market is expected to face supply shortages in the short term with state-owned steel producer Steel Authority of India Limited closing down its CRC mill at one of its plants and, though the volume shortage may be limited, it would impact sentiment and provide support for prices.
$1 = INR 63.76