Prices in the local Indian cold rolled coil (CRC) have remained stable during the past week at INR 40,000/mt ($596/mt) ex-works, amid sustained buying support, traders said on Tuesday, August 30.
“Though there are signs of some traders taking a pause after hectic gains in prices in earlier weeks, there is sufficient buying interest to enable CRC prices to consolidate at higher levels,” a Mumbai based trader said.
“To some extend anticipation of a correction too receded with a lot of market expectations of local steel mills hiking flat steel products for September deliveries,” he added.
Market sources said that while all kinds of discounts have been pulled out in all regions in view of positive outlook and high volume fresh bookings, at least two traders voiced caution arguing that most of the buying activity is sentiment driven and is not by actual sustained demand growth and current price levels still have 2-5 percent downside risks.
Even if local mills announce a base price hike next week, a reaction is a possibility leading to fall in volumes and rise in inventories in the short term, the two traders added.
$1 = INR 67.11