Prices in the local Indian cold rolled coil (CRC) market have remained stable during the past week at INR 44,500/mt ($681/mt) ex-works, as domestic steel mills are expected to keep their base prices unchanged for the current month, though market sentiment is perceptibly negative, traders said on Tuesday, October 10.
“Local prices are holding up largely because, contrary to previous expectations, Indian steel mills are not expected to change base prices. However, sentiment remains bearish as there are too many fundamental negatives in the market” a Mumbai-based trader said.
“There are all round-high inventories at both mills and dealers. CRC exports are drying up, triggering apprehensions of increased supply-side pressures on local prices. End-users have no appetite to restock,” he added.
At least two other traders citing market reports said that ex-India CRC export offers have falled for the second time during the past week, moving down another $10/mt to $590/mt FOB, and larger steel mills are progressively reducing volumes on offer for export and are instead focusing on domestic sales.
Considering the high inventories across the market, dealers are unlikely to book significant volumes even at unchanged base prices and so the resurfacing of discounts is a distinct possibility over the next few weeks, the traders added.
$1 = INR 65.32