In the past week, local Indian cold rolled coil (CRC) prices have remained stable for the third consecutive week at INR 41,500/mt ($618/mt) ex-works, amid sluggish buying interest and uncertainties over the direction of the market, traders said on Tuesday, June 14.
“The market lacks any direction at the moment. While local steel mills were expected to maintain base prices unchanged for the current month, the market is disappointed at the absence of any price adjustments by the mills, considering oversupply and sluggish demand,” said a Mumbai-based trader.
“Given the lack of import competition, local steel mills have not been under any compulsion to adjust base prices. Under these circumstances, both end-users and traders have been reluctant to conclude fresh bookings,” the trader added.
Market sources said that, with the government is expected to announce an extension of the minimum import price (MIP) for another 6-8 months, local CRC prices are expected to move sideways within a narrow range and did not rule out the possibility that some traders with high inventories would start discounting to liquidate stocks.