The local Indian cold rolled coil (CRC) market has continued to soften for the fifth consecutive week, with prices moving down by INR 500/mt in the past week to INR 47,000/mt ($705/mt) ex-works amid no respite from rising inventories and a lack of interest from end-users, traders said on Tuesday, March 14.
"After five weeks of downward movement, few in the market are sure of the next bottom. Accordingly, most are not inclined to make any fresh bookings," a Mumbai-based trader said.
"Almost all market participants have been reporting a steady rise in inventories and end-users are refusing to restock as sluggish demand is leading to a bearish cycle in the market," the trader added.
Market sources said that, despite the weakness of demand and of market conditions, Indian steel mills are unlikely to make any adjustments to their base prices, with at least two traders saying that, in the absence of any support, CRC prices could decline further from current levels.
$1 = INR 66.17