Prices in the local Indian cold rolled coil (CRC) market have remained unchanged during the past week at at INR 53,000/mt ($777/mt) ex-works, amid a sharp drop in fresh bookings by dealers in response to high inventories and a lack of improvement in demand, traders said on Tuesday, June 19.
“The market is seen to be taking a pause after prices rose early in the month after base price hikes by steel mills,” a Mumbai-based trader said.
“Higher price levels and dealers reporting higher inventories triggered a sharp drop in fresh bookings by market intermediaries, with steel mills also reporting inventory build-ups,” the trader added.
According to two other traders, Indian steel mills are largely seen to be maintaining their export offers unchanged in the range of $640-660/mt FOB, but no significant transaction volumes have been reported during the week.
The combination of mills' high inventories, the lack of overseas shipments and the slowdown in bookings by local dealers will ensure local CRC prices continue to move in a narrow range, the traders said, adding that the downside risk from current price levels is not very strong.
$1 = INR 68.22