The previous relatively stable trend of the local Indian cold rolled coil (CRC) market has given way in the past week to a downward movement, with prices edging down by INR 500/mt ($7/mt) week on week to INR 49,000/mt ($731/mt) ex-works in reaction to reports of a sharp rise in inventories at both steel mills and dealers as well as due to fears of rising imports, traders said on Tuesday, February 14.
"The slowdown in off-take by end-users has resulted in rising inventories. Large steel mills are reporting a slowdown in overseas shipments, further aggravating overall stock positions," a Mumbai-based trader said.
"The fact that the mills have maintained their base prices unchanged for the current month has been taken as an indication that they are finding it harder to push volumes into the market, while dealer prices are undergoing a correction," the trader added.
At least two other traders said that replacing the minimum import price by an extension of antidumping duty on CRC imports will also have a limited impact in keeping imports in check, and this is putting pressure on local prices.
These traders said that, given the current market environment, in the current month local CRC prices may lose ground by another INR 500/mt or at best move sideways.
$1= INR 66.93