Prices in the local Indian cold rolled coil (CRC) market have remained stable during the past week at INR 50,500/mt ($740/mt) ex-works, with the market taking a pause after two consecutive weeks of upward movement and with buyers reducing their fresh bookings, traders said on Tuesday, January 17.
“Since Indian CRC prices have recorded some of their highest gains in recent times, in the past week buyers stepped back from concluding fresh bookings. Most of those in the market are well stocked up anyway,” a Mumbai-based trader said.
“With several of the large producers yet to make a formal pricing announcement for the month and with the market uncertain about the likely size of price hikes, buyers are accordingly in wait-and-watch mode,” the trader added.
Market sources said that the CRC prices are expected to remain stable. Firstly, large end-users like auto manufacturers are reporting a sharp drop in sales. Secondly, the national budget to be placed before the Indian parliament on February 1 is causing concern as market participants are unsure of the government’s ability to boost industrial activity.
The sources said that, despite negative economic drivers, Indian steel producers are unlikely to give up efforts to push up domestic prices to offset rising input costs and the combination of these two elements will result in a stalemate of market sentiments.
$1 = INR 68.01