Local Indian CRC prices slump for second consecutive week

Tuesday, 29 January 2019 14:08:01 (GMT+3)   |   Kolkata
       

The downturn in the local Indian cold rolled coil (CRC) market has continued unabated with prices slumping by INR 1,000/mt week on week to INR 46,000/mt ($647/mt) ex-works, reacting to higher import competition, the slowdown in trading activity and expectations that local mills will adjust their prices in view of rising inventories across market segments, traders said on Tuesday, January 29.

An indication of the prevailing negative sentiments is that local CRC prices have lost INR 3,000/mt over the past two consecutive weeks with a sharp fall in bookings by both end-users and dealers at a time when even small-volume requirements of user industries are being imported, the traders said.

“Most key indicators are negative for the market. The manufacturing growth slowdown, high inventories, the increase in import shipments, and end-of-year considerations are all putting fresh pressure on prices,” a Mumbai-based trader said.

“At the same time, market expectations of a base price adjustment by local steel mills are prompting dealers to refrain from fresh bookings. However, I am not sure local steel mills will lower their base prices and sacrifice margins, impacting total revenues at a time of closing their accounts for the current fiscal year,” the trader added.

According to two other traders, the sustained inventory build-up will force Indian steel mills to lower their CRC base prices by INR 500-1,000/mt ($7-14/mt) for February deliveries. 

$1 = INR 71.10


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