Local Indian cold rolled coil (CRC) prices have slumped by INR 1,000/mt during the past week to INR 48,000/mt ($697/mt) ex-works, with a significant correction observed in the market triggered by the combination of year-end considerations, low demand from end-users and dealers’ reluctance to make fresh bookings in order to avoid inventory build-ups, traders said on Tuesday, March 26.
“The already negative bias in the market has been compounded by a definite correction setting in and prices softening during the past week,” a Mumbai-based trader said.
“The trigger for the correction has principally been the withdrawal of market intermediaries who are unwilling to make fresh bookings and lock up liquidity when they are busy closing their books of accounts,” the trader added.
According to two other dealers, the western and southern regional markets in India have reported continued discounting in the range of INR 500-750/mt ($7-11/mt) with regional dealers liquidating stocks to retain cash and avoid carrying high-priced inventories in a market environment with falling prices.
$1 = INR 68.84