Local Indian cold rolled coil (CRC) prices have remained unchanged during the past week at INR 54,000/mt ($734/mt) ex-works with the market taking a breather and intermediaries being cautious as regards increasing their commitments to avoid stock build up, traders said on Tuesday, October 16.
“CRC price gains earlier in the month is holding up and prices are consolidating at higher levels with little downside risk as local steel mills are reportedly considering a second base price hike towards the end of October,” a Mumbai-based trader said.
“But dealers are reducing their transaction volumes to avoid high-priced stock build up and locking up working capital leading to a fall in market activity,” the trader added.
Market sources state that local steel mills are considering another base price hike at around INR 500/mt for November deliveries and decision is expected to be announced once the festival holidays end next week.
$1 = INR 73.64