Prices in the local Indian cold rolled coil (CRC) market have increased by INR 1,000/mt during the past week to INR 48,500/mt ($754/mt) ex-works amid lower supplies from steel mills, traders said on Tuesday, February 13.
“Several dealers reported that they are not getting sufficient volumes particularly in western and southern regional markets, though the reasons are unclear at the moment, with steel mills claiming that there has been no reduction in volume offerings,” a Mumbai-based trader said.
“Whatever might be the exact reasons for the tightening of supplies in certain markets, the tighter supply has boosted sentiment and traders are seen to be making larger bookings,” the trader added.
At least two other traders said that, with no definitive indication available in the market on inventory positions at thesteel mills’ end, prices are finding support from higher trading volumes and attempts to build inventories by market intermediaries.
Restocking by dealers and resultant price support were bolstered by expectations of some market players that Indian steel mills would hike their base prices towards the end of the current month or in early March, the traders added.
$1 = INR 64.24