Domestic CRC prices under pressure owing to increasing import feasibility. Flat steel manufacturers were holding prices owing to rising possibilities of CRC import. There is good demand of CR Coils across some trading regions. However, the probability for CRC import in Chennai may increase if domestic prices refuse to cool off.
Steel-360 interacted with some traders based in Chennai who are planning for imports in the near term. Trading in Chennai has been deeply affected on slowdown in the economy.
There was some price cut announced for HRC in April, but no price changes were done for CRC products. Demand from the furniture segment has been strong and this kept the market going. Domestic prices continue to trade higher and thus some traders are planning to import CR products.
A trader based in Chennai stated, “We are currently getting offers from Japan for prime CR products at around USD 600-650/MT. But, importers are asking to book a minimum quantity of 500 MT in order to consider our bookings.”
Another trader said, “We have received some good offers for imported CR and color coated products and we have been asked to place our orders by the May-end. But, we are waiting for price announcement of the domestic manufacturers. We will take a stand only after considering the domestic prices and demand from our clients.”
An industry expert in Chennai quoted, “It is not wise to compare an offer with that of an order as traders need to consider multiple factors before placing their orders. The foreign exchange rate is quite volatile at this point and given the political situation of the country, the uncertainties for traders are quite high. It will be difficult to assess how much traders will actually pay for the imported products when the consignment reaches them after 30-45 days of transit.”