Prices in the local Indian cold rolled coil (CRC) market have remained unchanged during the past week at INR 52,750/mt ($727/mt) ex-works, with the market taking a pause after a price surge earlier in the month and with buyers cautious about concluding fresh bookings at higher levels, traders said on Tuesday, September 18.
“The pause in market activity has been expected as prices had moved up too fast. At the same time, with end-users adopting fresh measures for cost-effective inventory management, market intermediaries are also limiting their booking volumes anticipating a slowdown in off-take,” a Mumbai-based trader said.
“Downside risks from current levels will be limited since local steel mills continue to enjoy significant price leverage. But at the same time, unlike in the case of HRC, no export shipments have been reported during the week and, with steel mills operating close to maximum capacity utilization, there may be some supply-side pressure. Hence, as a net impact, I would forecast local CRC prices to remain range-bound in the short term,” the trader added.
However, according to two other traders, the CRC price trend may change dramatically as there are reports in the market that local steel mills are considering another flat product base price hike for the second time this month.
The market reports suggested that the large steel mills could increase CRC base prices by INR 500/mt before the end of the current month, the two traders said.
$1 = INR 72.51