Local Indian cold rolled coil (CRC) have resumed their uptrend with prices surging by INR 1,000/mt during the past week to INR 52,500/mt ($783/mt) ex-works, supported by base price hikes and an export push by domestic steel mills, traders said on Tuesday, May 8.
Market sources said that most Indian steel mills increased their CRC base prices by an average of INR 1,000/mt for May deliveries, leveraging the sustained supply tightness in the market and curtailing volumes being booked by traders. They said that the large mills are aggressively pushing CRC shipments to Southeast Asian markets.
In fact, the large Indian mills had reportedly increased their export offers by $10/mt during the past week to $660-680/mt FOB and this, together with the Indian rupee depreciating during the past week, will significantly boost margins from export shipments, the sources added.
“Some traders are reporting that mills are reducing their volumes offered for domestic deliveries in the current month, and the market understands that mills' low inventories and the tight supply situation will offer support for CRC prices to consolidate at higher levels,” a Mumbai-based trader said.
$1 = INR 67.06