Prices in the local Indian cold rolled coil (CRC) prices have remained stable during the past week at INR 45,500/mt ($657/mt) ex-works amid thin trading activity and market awaiting base price signals for current month from domestic steel mills, traders said on Tuesday, June 4.
“The sentiment is very bearish with stocks movement slowing down on lack of buying interest from end-users. Even small volume local buyers are staying away from making commitment and are preferring to wait base price signals from producers,” a Mumbai based trader said.
“Local CRC prices can move either direction from current levels depending on base pricing strategy of domestic steel mills and sustainability of import pressures,” he added.
According to two other traders, the market is unsure of pricing announcements from local steel mills. While market conditions, slowdown in stock movements and reports of rising inventories at mill end would indicate a slight downward adjustments of base price, steel mills are also claiming sharp rise in raw material prices like iron ore which could preclude possibilities of an adjustments.
Sources said that single biggest negative for sentiments has been reports of automobile sales declining for eight consecutive month in May 2019 and hence sharp fall in intermediate steel product restocking by all automobile manufacturers.
$1 = INR 69.28
