Over the past week, prices in the local Indian cold rolled coil (CRC) market have remained stable for the second consecutive week at INR 49,000/mt ($754/mt) ex-works, amid market expectations of a base price revision by domestic steel mills and ongoing tightness of supply, traders said on Tuesday, March 6.
According to market sources, domestic steel mills were expected to announce an increase in base CRC prices which could be in the range of INR 500-1,000/mt.
The sources said that the mills are expected to come out with their revised base prices starting from the end of this week, taking advantage of the continuing tightness of supply in the market.
“Unlike earlier in the month, the market direction is getting clearer. Supplies are expected to remain tight in view of the CRC mills of some large steel companies continuing to carry out maintenance works and given the further fall in import competition in view of the downward movement of the Indian rupee against the dollar, and the combination of these factors will provide strong support for local CRC prices,” a Mumbai-based trader said.
“The only moot point is whether local CRC prices will breach the INR 50,000 mark and whether such prices would trigger strong resistance from buyers,” the trader added.
$1 = INR 65.00