Prices in the local Indian cold rolled coil (CRC) market have remained stable for the third consecutive week at INR 44,000/mt ($683/mt) ex-works, ahead of an anticipated price hike by Indian steel mills, while market participants expect trading volumes to dip further in reaction to the awaited price increase, traders said on Tuesday, December 5.
Market sources said that large steel mills are considering a hike in CRC base prices in the range of INR 500-1,000/mt ($8-16/mt) for December deliveries. The sources said that the steel mills are expected to start announcing revised base prices starting later this week.
“It is to be seen if this latest CRC price hike will be absorbed by the market. Volumes at present are very low and the lack of interest is evident from the fact that even an anticipated price increase has not triggered any restocking by dealers at current prices,” a Mumbai-based trader said.
“Indian steel mills are citing increases in imported coking coal and domestic iron ore prices to back higher CRC prices. But I not think that there will be too much resistance in the market to force a price correction despite low demand as import competition is negligible,” he added.
$1 = INR 64.41
