Over the past week, prices in the local Indian cold rolled coil (CRC) market have got back on an upward trend, increasing by INR 750/mt to INR 49,000/mt ($704/mt) ex-works, as domestic steel mills commenced revising base prices for the current month and supported by sustained low import shipments, traders said on Tuesday, March 12.
Market sources said that two large steel mills hiked base prices for flat products in the range of INR 500-1,000/mt, while other producers were expected to follow suit over the current week for March deliveries.
“Considerations linked to the end of the fiscal year and sustained low inward shipments of imported CRC have backed domestic steel mills to go in for an aggressive domestic pricing strategy to maximize margins even though trade volumes in the market have been falling in the absence of demand-side support,” a Mumbai-based trader said.
“I would feel that a more realistic local price trend will emerge in the new fiscal year starting April 1. Since a sustained fall in bookings as seen over the past few weeks might prompt local steel mills to either adjust base prices or offer discounts to revive trading sentiments once the compulsion to maximize margins eases,” the trader added.
$1 = INR 69.60