The local Indian cold rolled coil (CRC) market has remained under pressure for the second consecutive week with prices moving down by INR 1,000/mt week on week to INR 49,000/mt ($704/mt) ex-works as end-users and dealers have slowed their activity due to end-of-year considerations, steady import competition and impending political uncertainty, traders said on Wednesday, January 2.
Market sources state that domestic CRC prices in India have lost INR 2,000/mt over the past two consecutive weeks, indicating weak manufacturing conditions and a bearish outlook in the medium term.
“Import competition has kept local CRC prices under pressure for the past several weeks and aggravating inventory situations at most large steel mills,” a Mumbai-based trader said.
“I also feel that, with political activity increasing now that Indian national elections are just a few months away, this is giving rise to uncertainties over the economic situation and most in the manufacturing sectors are cautious about concluding new transactions, contributing to weak market conditions and sentiments,” the trader added.
An industrial analyst with a Mumbai-based financial advisory firm said citing government data released on Monday that Indian infrastructure growth in November 2018 was recorded at 3.5 percent over the corresponding month of 2017 and was at the lowest in the past 16 months, indicating a slowdown in manufacturing, and this will impact the off-take of finished steel products in the domestic market and contribute to the overall weakness of prices seen currently.
$1 = INR 69.61