Local Indian cold rolled coil (CRC) prices have remained stable during the past week at INR 46,000/mt ($660/mt) ex-works, but trading activity has remained at negligible levels with market participants preferring to await the outcome of the national elections and the abatement of political uncertainty, traders said on Tuesday, May 21.
“Even though most exit polls indicate that the incumbent government will return to power, a section of the market is not attaching much credibility to these polls and prefers not to make any fresh bookings until the final poll results are out on Thursday,” a Mumbai-based trader said.
“In view of sluggish industrial growth data, market intermediaries are unwilling to make fresh bookings. The current market condition is critically linked to the new government taking charge and possibly offering a fiscal stimulus to growth. Without that, the key drivers of prices will remain weak,” the trader added.
According to two other traders, given the combination of large domestic steel mills’ inability to ship volumes overseas and rising inventories from slow domestic sales, the market is expecting adjustments in base prices of at least INR 500/mt for June deliveries aimed at attracting fresh bookings.
$1 = INR 69.69
