Prices in the local Indian cold rolled coil (CRC) market have remained stable for the second consecutive week at INR 51,000/mt ($739/mt) ex-works, amid inactive market conditions, a bearish outlook and expectations of Indian steel mills adjusting base prices next month, traders said on Tuesday, July 24.
“Market activity has touched negligible levels. Dealers are not restocking, anticipating that local steel mills will lower base prices, considering that they are carrying high inventories,” a Mumbai-based trader said.
Sources said that the market expects flat steel prices to weaken significantly over the coming weeks in response to lower export opportunities in Southeast Asian markets and sustained high production by Indian steel mills.
Large Indian steel mills have maintained their CRC exports offers unchanged in the range of $660-680/mt FOB, though no export transactions have been reported during the past week since Vietnam, an important destination of Indian exports, is mulling CRC import restrictions, which has impacted sentiment among Indian exporters.
$1 = INR 68.97