Local Indian cold rolled coil (CRC) prices have seen a correction during the past week, declining by around INR 300-400/mt ($5-6/mt) to approximately INR 48,500/mt ($782/mt), due to sluggish demand and rising inventories at dealers, traders said on Friday, November 28.
According to a Mumbai-based trader, inventories at the dealers' end are reported to be high but even after the price adjustments stock movements have not improved, indicating the negative outlook of buyers.
Buyers have also been out of the market due to reports stating that primary steel producers are considering a price cut for flat products in the range of INR 700-1,000/mt ($11-16/mt) for December deliveries.
Market sources said that normally steel demand tends to perk up during the November-March period with monsoon season over and with the speed of infrastructure investments picking up, but currently no such trend has been seen and so the price cuts being heard will likely be insufficient to have any significant impact on demand or transaction volumes.
$1 = INR 62.01