Prices in the local Indian cold rolled coil (CRC) market have remained unchanged for the third consecutive week at INR 53,000/mt ($772/mt) ex-works, as market activity has dipped further amid reported high inventories held by market intermediaries, traders said on Tuesday, July 3.
“Dealers are carrying more-than-sufficient inventories across the regions of India and hence the steady fall in the volume of fresh bookings, which is also in anticipation of base pricerevisions by Indian steel mills over the next few days for current month deliveries,” a Mumbai-based trader said.
“Despite the slowdown in market activity, he medium-term outlook remains positive. The growth in the automobile industry will ensure support for CRC demand and prices,” the trader added.
According to another trader, the positive outlook is also backed by reports that, unlike other flat product categories, no CRC import transactions are reported, possibly in reaction to the Indian currency depreciating against the US dollar to a six-year low, and the lack of import competition will mitigate the inventory build-up in the local Indian market.
$1 = INR 68.61
