The downward trend of the local Indian cold rolled coil (CRC) market has continued for the third consecutive week, with prices moving down by INR 500/mt week on week to INR 46,500/mt ($667/mt) ex-works, as the market awaits pricing signals from domestic steel mills amid negative sentiments over manufacturing growth slowdown and buyers’ resistance to high-priced material, traders said on Tuesday, April 9.
“Even though the market expects a base price adjustment by local steel mills, given the slowdown in market activity and the reported rise in inventories across market segments, there is no definitive information on the pricing strategy of steel mills for current month deliveries as yet,” a Mumbai-based trader said.
“Also, with the first phase of the national elections starting in another two days, political uncertainty is also impacting market sentiment and traders are reluctant to make bookings at present,” the trader added.
According to two other traders, though the market is expecting local steel mills to lower their base price by a minimum of INR 500/mt to drive market activity, the mills are most likely to maintain base prices, belying market expectations.