Prices in the local Indian cold rolled coil (CRC) market have increased for the third consecutive week, moving up INR 500/mt ($8/mt) week on week to INR 43,500/mt ($678/mt) ex-works as a second base price hike by domestic steel mills is expected later this month, traders said on Tuesday, August 22.
Market sources said that local steel mills are expected to revise their CRC base prices upward by around INR 1,000/mt ($16/mt) before the end of this month.
The sources said that Indian steel mills are being aggressive in their pricing largely owing to strong export shipments of flat products to Southeast Asian markets.
“It is not clear whether the domestic market will absorb the steady rise in base prices. Dealers have no option but to pass on higher base prices to end-users even as transaction volumes dip as users are unwilling to book large volumes and instead prefer to minimize their inventories in the absence of a demand improvement,” a Mumbai-based trader said.
$1 = INR 64.12