Prices in the local Indian cold rolled coil (CRC) market have remained stable for the second consecutive week at INR 47,000/mt ($736/mt) ex-works, as market participants awaited pricing signals from Indian steel mills, traders said on Tuesday, January 23.
Sources said that, while some of the large mills like Steel Authority of India Limited have started announcing base price hikes for flat products like hot rolled coils, the mills are yet to take a call on CRC prices and a clearer picture of their pricing is expected to emerge later in the week.
The sources said that, while HRC base prices are being hiked for the second time this month, it is possible that CRC will be exempted from a price revision, at least in the current month, given the fact that CRC stocks have generally been moving slowly. With the uncertainty over the mills' CRC prices, market participants are exercising caution as regards concluding fresh deals, the sources added.
“The stability of prices is at best temporary. Local steel mills at best will defer base price revisions until next month, given their imperative to offset rising input costs and protect margins as the financial year comes to a close,” a Mumbai-base trader said.
“Also, Steel Authority of India Limited’s Bokaro Steel Plant has closed its CRC mill for maintenance and it is not clear how this will impact availability in the Indian market,” the trader added.
$1 = INR 63.77