Local Indian cold rolled coil (
CRC) prices have remained stable during the past week at around INR 44,500/mt ($715/mt) ex-works amid a lack of buying interest and limited import transactions, traders said on Wednesday, February 11.
According to a Mumbai-based trader, the
CRC market is on a "pause mode with buyers preferring to stay on the sidelines, resulting in sideways movement of prices at the dealers' end."
"At the same time, prices are stable despite the lack of local buying interest since import transactions are being deferred amid talk about an increase in import duty later this month and the renewed downward movement of the Indian currency against the dollar," he added.
Market sources said that, apart from speculation over changes in import duties, other uncertainties like price adjustments by local steel mills, low expectations of a demand uptick from
CRC consuming industries particularly the auto sector, and high bank interest rates are forcing dealers to maintain minimum inventories.
The market for flat products, particularly the slowmoving
CRC market, is on a knife-edge and can move either way depending on government policy initiatives for the manufacturing sectors in the forthcoming federal budget on February 28 and once local steel companies make a decision on the size of their price adjustments, the sources said.