Local Indian cold rolled coil (CRC) prices have moved down by INR 400/mt during the past week to INR 43,800/mt ($676/mt) ex-works in reaction to mounting inventories at steel mills, reduced export prospects and a slowdown in off-take by end-users, traders said on Tuesday, November 7.
“Most large mills have decided to keep their November delivery prices unchanged month on month. But the reaction in the market is negative to mounting CRC inventories both at steel mills and dealers,” a Mumbai-based trader said.
“In flat products, there is a divergence of trends of HRC and CRC prices. HRC prices are seen to be rising, finding support from lower import competition. But in the case of CRC, which in any case is a slower moving category, there is little support from either demand or the supply side,” the trader said.
Market sources said that no CRC export transactions by large mills have been reported during the past two weeks, and this has impacted sentiments, contributing to apprehensions of a further rise in mills' inventories.
$1 = INR 64.83