Local Indian cold rolled coil (CRC) prices have continued on a downtrend for the sixth consecutive week, losing INR 250/mt ($3/mt) week on week to INR 41,800/mt ex-works as sentiments have taken a big hit with most major automobile manufacturers declining to resume production despite relaxations of lockdown restrictions from today, SteelOrbis has been informed on Monday, April 20.
All expectations of any revival in demand and off-take from local steel mills have been disappointed with virtually all domestic automobile manufacturers claiming that resumption of production is not viable since the entire distribution and dealer network predominantly in high-risk urban areas is closed and upstream production is not feasible if downstream distribution, marketing and sales remain paralyzed.
Traders said that, unlike other finished flat products, exports of ex-India CRC are neither feasible nor acceptable by buyers and hence most domestic steel mills have dramatically reduced or closed down rolling mills for conversion to CRC.
At least two traders said that even higher discounts ranging around INR 1,000/mt ($13/mt) from some integrated steel mills aimed at liquidating stocks did not attract fresh bookings.
At least two large Indian passenger car manufacturers have declared that it would take two months after lockdown restrictions are lifted before their plants can be brought back to production and, if the current lockdown until May 3 is lifted thereafter plants could be brought back into production only around late June and July, and hence fresh bookings of CRC will continue to remain at minimal levels even as domestic steel mills minimize utilizations of their rolling mills.
$1 = INR 76.45
