Local Indian cold rolled coil (CRC) prices have edged down by INR 400/mt during the past week to INR 39,000/mt ($546/mt) ex-works due to negligible trading activity, traders said on Monday, September 16.
“Nobody is in a mood to restock. Sentiments have taken a further knock with reports that the government will not accede to industry demand for cuts in taxes on automobiles and commercial vehicles. This has triggered fresh fears that automobile manufacturers will increase the number of monthly ‘no production days, which in turn would mean a further fall in raw material off-take from steel mills and dealers,” a Mumbai-based trader said.
“Indian CRC is also not finding many export opportunities in overseas markets, which will put local prices under additional pressure in the coming weeks,” the trader added.
However, a section of the market said that, with Malaysia imposing antidumping duties on CRC imports from Japan, China and South Korea, it remains to be seen whether it opens up export markets from Indian steel mills.
The ability to increase shipment volumes to Malaysia will of course depend on the aggressive pricing ability of Indian domestic steel mills and also the ability of Indian CRC to meet the quality specifications of importers, market sources said.
$1 = INR 71.48