The local Indian cold rolled coil (CRC) market has bounced back during the past week with prices moving up by INR 500/mt to INR 53,000/mt ($779/mt) ex-works on the back of a sustained export push by large steel mills, traders said on Tuesday, May 22.
“Expectations of a price correction in the CRC market have not materialized. In fact, the domestic flat steel market is showing divergent trends with HRC prices under pressure and CRC prices rebounding after a brief lull,” a Mumbai-based trader said.
“Unlike in the case of other flat products, large mills are aggressively pushing export volumes of CRC to Southeast Asian markets, and this has negated expectations of an easing of tight supplies in the Indian market,” the trader added.
Market sources said that, despite the weakening of the Indian currency, large steel mills have increased export offers by $10-15/mt to about $640-650/mt FOB, significantly boosting their export margins.
The export initiatives are also expected to check the reported rising inventories at mills, providing support for CRC prices, the sources added.
$1 = INR 68.02