Local Indian CRC market moves down for third consecutive week

The local Indian cold coil (CRC) market has declined for the third consecutive week, with prices moving down by INR 1,000/mt week on week to INR 45,500/mt ($704/mt) ex-works amid concerns over demand and reports of rising inventories held by steel mills and dealers, traders said on Tuesday, May 30.
 
"The negatives in the market have been aggravated. Local CRC prices have lost INR 2,000/mt over the past two weeks, reflecting the bearish market conditions," a Mumbai-based trader said.
 
Market sources said that there have been reports of a sharp rise in inventories held by Indian steel mills and dealers, while a slowdown of fresh bookings from end-users has increased the pressure on prices.
 
It has been pointed out by market sources that large Indian steel mills are reducing their export offers by $15-20/mt to levels of around $600/mt on FOB basis in order to push volumes overseas, in response to low domestic demand and rising inventories.
 
However, at least two other traders have discounted the possibility of Indian steel mills adjusting their base prices for June deliveries despite worsening domestic market conditions.
 
$1 = INR 64.64