Over the past week, prices in the local Indian local cold rolled coil (CRC) market have remained unchanged during the past week at INR 49,000/mt ($711/mt) ex-works, although sentiment has remained negative amid buyers’ lack of appetite for high-priced material and the overall cautious mood in the market due to political uncertainties, traders said on Tuesday, March 19.
“CRC prices have largely remained stable owing to low import competition and the pricing power of local steel mills which completed base price hikes earlier in the month,” a Mumbai-based trader said.
“However, there has been significant a fall in the buying interest of both actual users and market intermediaries, reflected in the sparse trading activity seen during the past week. It is to be seen whether the lack of buying triggers a price correction or not,” the trader added.
At least two other traders said that, with politics moving centre-stage and national elections starting next month, market participants have been reluctant to conclude fresh transactions and this situation is expected to continue until a new government is formed in New Delhi at the end of May.
Market sources said that several dealers are reported to be offering discounts ranging around INR 500-750/mt to liquidate inventories in order to improve their cash liquidity ahead of the end of the fiscal year on March 31.
$1 = INR 68.96