Local Indian cold rolled coil (CRC) prices have come under pressure from increased import volumes during the past week, edging down by INR 500/mt ($8/mt) to about INR 44,000/mt ($708/mt) ex-works, traders said on Thursday, February 19.
According to a Mumbai-based trader, import transactions for large volumes of ex-China CRC have been concluded during the week as offers have been reduced steadily since early this month and as interest in local CRC has weakened significantly, putting local prices under pressure and resulting in low trading volumes for local CRC.
Market sources said that ex-China CRC offers have declined by $10/mt during the past week, with import transactions being concluded in the range of $460-465/mt CFR Mumbai.
Sources said that sentiments and trading volumes in the local CRC market have continued to be weak, largely owing to domestic steel mills not yet taking any decision on adjusting prices in view of rising import competition and the lack of interest in local flat products.
While local steel mills contend that their current costs of production do not permit them to make large price adjustments and that they are depending on the government to provide tariff protection from imports, dealers insist that the steel mills will be forced to lower their prices, the sources said.
The sources also said that, with Chinese steel prices falling sharply, even if the government raised the CRC import duty to 10 percent from 7.5 percent at present, this would be insufficient to check imports from China considering the hefty export subsidy on offer to steel mills in that country.
$1 = INR 62.13