Prices in the local Indian cold rolled coil (CRC) market have remained stable for the second consecutive week at INR 48.000/mt ($707/mt) ex-works, despite the increases in other flat products’ prices and anticipated base price hike by local steel mills next month, traders said on Tuesday, December 27.
“One of the reason for stability in CRC prices while other flat product prices are surging is because traders are holding high inventories and are keen to liquidate stocks before the price hike” a Mumbai based trader said.
“These dealers liquidating stocks possibly anticipate a sharp downturn in buying from end users once base prices are increased by the mills and fear that higher prices would push buyers out of the market. And in any case in local markets, CRC stocks move far slower than other flat products” the trader added.
Market sources said year-end considerations are also keeping most buyers off the market resulting in drop in trading activities and giving only little headroom to dealers to increase prices of slow moving CRC.
$1 = INR 6.95