Local Indian cold rolled coil (CRC) prices have remained stable during the past week at INR 41,250/mt ($608/mt) ex-works, though some dealers have been offering marginal discounts of INR 100-200/mt ($1.50-3/mt) in order to liquidate stocks, traders said on Tuesday, June 28.
"Although prices have remained stable in a rather inactive market, expectations of a correction have been gaining momentum," a Mumbai-based trader said.
"The dealers' discounts that have surfaced during the past week are an indication of concerns over high stocks and low demand," the trader said.
Some market sources said that, with steel mills unlikely to adjust prices for July, the market may double the discount margins over the next few weeks, as this would be the only option for traders to unwind inventories to more comfortable levels.
Sources said that several large steel mills have reported higher April-May 2016 production levels compared to the corresponding period of last year and but with the slowdown in fresh bookings most have been left with high inventories. However, with mills refusing to adjust their base prices, high stocks will continue to put pressure on prices among market intermediaries, the sources said.
1$= 67,88 INR