Local Indian cold rolled coil (
CRC) prices have remained stable during the past week at INR 41,500/mt ($617/mt) ex-works even as volumes in the market declined with buyers remaining on the sidelines, traders said on Tuesday, May 31.
"The market is either taking a breather after the gains main early in the month. Or a correction could be around the corner as buyers largely prefer to stay away, awaiting pricing announcements for next month from local steel mills," a Mumbai-based trader said.
"There are no clear signals in the market from local steel mills. Most buyers are awaiting a direction before making any fresh transactions," the trader said.
"My feeling is that
CRC prices will remain flat at current levels in the absence of any demand uptick. Downside risks are also limited as local mills are unlikely to adjust their base prices despite the slowdown in volume offtake at the dealers' end," he added.
However, a section of market sources did not rule out discounting of around INR 400/mt ($6/mt) by some dealers if prices consolidate at current levels and if the dealers still have high levels of inventories.
$1 = INR 67.23