Local Indian cold rolled coil (CRC) prices have remained unchanged for the second consecutive week at INR 53,000/mt ($777/mt) ex-works amid moribund market conditions and buyers preferring to stay away, traders said on Tuesday, June 26.
“End-use demand remains strong. However, market intermediaries are not going in for fresh bookings as they have comfortable inventories and hence the lack of activity in the market,” a Mumbai-based trader said.
“The absence of any pricing signals from steel mills on CRC July deliveries is also prompting buyers to take a pause and wait for a trend to emerge before concluding new deals,” the trader added.
According to two other traders, in the flat product segment, export shipments of CRC had reportedly slowed down over the past week and, with most local steel mills operating at maximum capacity utilization, local CRC prices will be under slight supply-side pressures.
Under these circumstances, even if local steel mills go in for a base price hike in July, the size of the increase would be moderate in view of inactive market conditions and higher supplies, the two traders averred.
$1 = INR 67.17