Local Indian cold rolled coil (CRC) prices have moved down by INR 600/mt week on week to INR 38,400/mt ($541/mt) ex-works amid negligible market activity, traders said on Monday, September 23.
Sentiments in the market have turned even more bearish after it was confirmed that the Goods and Service Tax (GST) Council, the apex body governing indirect taxes, ruled out any tax cut for the automobile industry which has suffered ten consecutive months of falling sales.
“With no tax cut for automobile manufacturers, no revival in CRC demand is expected. The government has of course announced cuts in corporate tax and, while this would improve bottom-lines of companies, it is unlikely to trigger any change in market dynamics which are suffering from an acute demand crunch,” a Mumbai-based trader said.
“Key CRC consuming industries, which are expecting a pre-festival demand revival, are disappointed and few manufacturers are concluding fresh raw material bookings,” the trader added.
At least two other traders have confirmed that large steel mills are offering discounts in the range of 8-10 percent across the board, but this has limited success in pushing volumes in the market.