Local Indian cold rolled coil (CRC) have declined by INR 200/mt during the past week to INR 44,300/mt ($682/mt) ex-works, amid weak trading activity and uncertainties over steel mills’ base prices next month, traders said on Tuesday, October 24.
“The stability early in the month has given way to pessimism in the market. There is a lot of stock floating at steel mills and dealers and there is no buying interest in the market,” a Mumbai-based trader said.
“The market also does not know much about the base pricing the steel mills are likely to adopt next month. Considering that mills are saddled with inventories, the market expects a base price revision next month but nothing is certain at the moment and dealers prefer to stay on the sidelines,” the trader added. Two other traders said that, unlike the situation regarding other flat products, Indian steel mills were not offering discounts to push sales of CRC.
However, there is uncertainty over any imminent price correction considering that most Indian steel mills are financially stressed and will be averse to accepting lower margins to keep pushing higher volumes into the market, the traders added
$1 = INR 64.99