Local Indian CRC prices rise for second straight week

Local Indian cold rolled coil (CRC) prices have continued to their uptrend for the second consecutive week, with prices moving up by INR 750/mt during the past week to INR 48,250/mt ($748/mt) ex-works on the back of a combination of factors including base price hikes made by steel mills, fresh import restrictions and restocking, traders said on Tuesday, April 11.
 
"CRC prices are moving up. Dealers have been placing bookings for large volumes even as large steel mills have substantially increased their base prices," a Mumbai-based trader said.
 
"The base price revisions made by steel mills during the past week have ranged at around INR 1,000/mt. But expectations of a demand revival led by the auto manufacturing industry as well as anticipations of a second price hike by steel mills later this month have provided strong support for prices," the trader added.
 
Sources said that the fresh announcement of import restrictions has also provided impetus for CRC prices. The sources said that India's Directorate General for Anti Dumping and Allied Duties (DGAD) has announce the levy of antidumping duties on imported CRC, hot rolled coil (HRC) and mild steel (MS) plates from China, South Korea, Ukraine, Russia, Brazil and Indonesia for a period of five years.
 
The sources said that the DGAD recommendation for antidumping duties will be forwarded to the department of revenue under the Ministry of Finance for issue of formal notification and that the levy would be effective for five years from the date of notification.
 
This is the first time that long-term protection on imported CRC and HRC products will be levied for a period of five years, replacing previous interim duty levies, the sources said.
 
Now that local steel mills have been assured of a long-term import protection measure, they are expected to take advantage of it and announce an upward price revision, the second in the current month, the sources added.
 
$1 = INR 64.47