Local Indian cold rolled coil (CRC) prices have remained unchanged for the third consecutive week at INR 45,500/mt ($706/mt), ex-works, as concerns mount over the introduction of the reformed indirect tax regime next month, traders said on Tuesday, June 20.
“Small and medium scale market intermediaries are still unfamiliar with the tax compliance issues,” a Mumbai-based trader said.
“Dealers are staying away from making any fresh bookings. On the contrary, most are busy with stock clearance to avoid being liable for multiple taxes - old and new rates - and there are reports that many are offering discounts in order to empty their stocks,” the trader added.
Sources said that stock reduction discounts are around INR 500/mt ($8/mt) particularly in the case of CRC, which is the slowest among flat products in terms of stock movement even in normal times.
$1 = INR 64.43