Local Indian CRC prices slide for the seventh consecutive week

Monday, 05 August 2019 15:44:40 (GMT+3)   |   Kolkata

Downward pressures persisted in local Indian cold rolled coil (CRC) market for the seventh consecutive week with prices decreasing by INR 750/mt to INR 41,500/mt ($588/mt) ex-works, amid worsening sentiments triggered by negative reports from key consuming industries and market intermediaries sharply lowering fresh bookings in face of already high inventories, traders said on Monday, August 5.

“Fresh reports from key consuming industries like automobile manufacturing worsened sentiments and triggering fears that inventories would rise further across market segments—producers and dealers,” a Mumbai based trader said.

“The five largest automobile manufacturers reported a 30% fall in sales during July reporting negative sales for the ninth consecutive month. These companies are closing down some production lines and sharply reducing raw material inventories and also laying off contract workers. These are clear signals that support to raw materials will further weaken,” he added.

At least two traders said that with stock movements slowing down over the past six weeks, local steel mills were likely to be forced to lower base price but the only question currently in the market was whether such base price cuts would be sufficient to support prices in absence of any demand side support.

1$ = 70,57 INR

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