Prices in the local Indian cold rolled coil (CRC) market have remained stable during the past week at INR 44,000/mt ($684/mt) ex-works, with little change in market conditions, while market participants are uncertain about the short-term trend, traders said on Tuesday, November 21.
“Despite sluggish trading activity, CRC prices have remained unchanged. Since prices are critically poised and can go in either direction from current levels, neither end-users nor dealers are willing to make fresh bookings,” a Mumbai-based trader said.
“The fundaments of the market are confusing. Local steel mills have pricing power in view of the fall in imported flat products, but demand among user sectors remains sluggish. A definite short-term trend has to emerge to revive volumes in the market,” the trader added.
Market reports indicate that India’s flat product import volume in October 2017 was at least 11-12 percent lower than the corresponding month of the previous year and the lower import competition is expected to enable Indian steel mills to at least maintain base prices unchanged despite the weak demand.
At least two other traders said that CRC prices can be expected to move sideways until next month when steel mills announce December prices. They said that producers could even go in for a hike in base prices citing rising imported coking coal prices. However, even the prospect of a base price increase is not triggering bookings at current prices considering inventory levels in the secondary market, the traders said.
$1 = INR 64.34