Local Indian cold rolled coil (CRC) prices have remained stable for the second consecutive week at around INR 39,000/mt ($611/mt), finding support from low import transaction activity even though trading activity has remained muted during the past week, traders said on Tuesday, July 28.
"Buyers have been staying away due to month-end considerations, awaiting new August pricing from local steel mills," a Mumbai-based trader said.
"Some large mills were seen to be offering volume discounts of around INR 500/mt ($8/mt) but buyers still refused to take the bait," the trader said. "However, prices were supported by low import transactions even though import offer prices were down," he added.
Market sources said that ex-China CRC offers have declined by $10-15/mt during the past week, now ranging at $390-400/mt CFR Mumbai for late August shipments. Nevertheless, very few import transactions have been reported in the market with the Indian rupee depreciating rapidly and importers have been cautious about making bookings given the weakening currency.
The sources also said that, with fresh uncertainties and turmoil surfacing in Chinese financial markets, importers are anticipating a sharper fall in offers before concluding any import transactions at levels which would compensate for the falling rupee.
$1 = INR 63.81