Prices in the local Indian cold rolled coil (CRC) market have increased by INR 500/mt during the past week to INR 49,000/mt ($763/mt) ex-works, amid a combination of apprehensions over supplies from mills and expectations of base price revisions, traders said on Tuesday, February 20.
“Apprehensions over supply tightening and base price hikes by local steel mills early next month is providing support for CRC prices despite the slowdown of stock movement at the dealers’ end,” a Mumbai-based trader said.
“The supply fears stem from the blast furnace at Steel Authority of India Limited's Bhilai Steel Plant developing a crack and the shutdown of Tata Steel’s Kalinganagar plant. The impact on CRC supplies in the market is still uncertain, but concerns about supplies have definitely impacted sentiments in the market,” the trader added.
Market sources said that the market expected steel mills to hike CRC base prices by at least INR 500/mt ($8/mt) in the coming weeks, taking advantage of tight supplies.
The sources pointed out that trading activity is expected to be at a low ebb in the coming weeks with steel mills revising base prices on the one hand and dealers limiting their bookings in response to working capital limitations as the current fiscal year draws to a close.
$1 = INR 64.70