Over the past week, prices in the local Indian cold rolled coil (CRC) market have remained unchanged for the fifth consecutive week at INR 51,000/mt ($730/mt) ex-works, in absence of any emerging trend evident with neither market intermediaries nor end-users have been willing to make fresh commitments, traders said on Tuesday, August 14.
“The prolonged market doldrums has pushed buyers and dealers to the sidelines. No one is willing to commit any transaction as short term trends are uncertain and price can move either direction,” a Mumbai based trader said.
“Any trigger to break the current stagnant conditions is not clear. Local steel mills, which are carrying large inventories, are refusing to adjust their prices, while buyers are not willing to make bookings at what they feel at high levels. This situation is leading to a standoff between buyers and sellers,” he added.
An analyst tracking the steel industry has pointed out the negative key drivers of the market, stating that while manufacturing index during July has slowed down while passenger car vehicle sales during the month was down 2.71 percent, contributing to stagnant CRC market conditions.
$1 = INR 69.88