Over the past week, prices in the local Indian cold rolled coil (CRC) market have increased by INR 650/mt to INR 47,650/mt ($667/mt) ex-works, as import competition has eased and as domestic steel mills have increased export shipments thereby slightly easing previous concerns over high inventories, traders said on Tuesday, February 19.
“Sentiment in the market has improved slightly amid reports of higher overseas CRC shipments by large domestic steel mills. If the steel mills are able to sustain export shipments volumes over the next few weeks and ease pressures from mounting inventories, the markets expect the mills to increase base prices next month and this has been supporting prices,” a Mumbai-based trader said.
“The only negative has been from the demand side as prices have been edging up, with the steady fall in trading volumes indicating the continued depression of demand,” the trader added.
However, according to two other traders, the price gain during the past week has largely been based on expectations that the government will be forced to accede to demands from local steel producers to impose import restrictions possibly in form of minimum import prices, which would ensure a continued fall in inward shipment volumes and in turn support local prices.
The traders said that a section of the market is expecting a modest CRC base price hike in the region of INR 500/mt ($7/mt) next month.
$1 = INR 71.48