Local Indian cold rolled coil (CRC) prices have decreased by INR 500/mt during the past week to INR 45,500/mt ($654/mt) ex-works, amid a combination of import pressures, low off-take by end-users and expectations of base price revisions by domestic steel mills, traders said on Tuesday, May 28.
“The negative sentiment is being led by the depressed performance of key end-use manufacturing sectors like automobiles and consumer durables, all of which are steadily lowering their raw material restocking amid falling sales,” a Mumbai-based trader said.
“At the same time, some end-users are shifting to lower priced imported CRC even for their requirements for modest volumes, leading to a sharp fall in trading activity in the local market,” the trader added.
At least two other traders said that CRC prices have also been reacting to market expectations that local steel mills will be forced to adjust base prices for June deliveries in view of the slowdown in stock movements in the domestic market as well as large mills’ inability to clinch export contracts.
A section of the market said that most market intermediaries are waiting for a new government to take charge in New Delhi later this week and are awaiting signals from the government on initiatives to revive sagging demand across various manufacturing segments.
$1 = INR 69.61
