Local Indian CRC prices soften further amid low bookings by end-users, sustained inward shipments

Tuesday, 16 July 2019 14:57:44 (GMT+3)   |   Kolkata

Local Indian cold rolled coil (CRC) prices have continued to remain under pressure, decreasing by INR 500/mt during the past week to INR 43,500/mt ($634/mt) ex-works in reaction to the sustained fall in demand from end-users and import competition, traders said on Tuesday, July 16.

“The outlook for local CRC continues to remain very negative with no evidence of demand from key sectors like automobile and consumer goods manufacturing reviving in the medium term. Most manufacturers have lowered bookings as they are extremely cautious in managing raw material inventories when sales of finished products are falling. Several end-users prefer imports even for requirements of relatively small volumes, putting local prices under pressure,” a Mumbai-based trader said.

“The latest data show that auto sales during the April-June period this year declined by 18 percent, the sharpest fall in a quarter since 2000-01. Several auto manufacturers are closing down production lines. Under these circumstances, the market is extremely bearish on both volumes and prices reviving in the medium term,” the trader added.

According to two other traders, the fact that the government has showed no urgency in increasing customs duties on imported steel has also bolstered preference for imported CRC and the continuation of this trend will only increase fresh pressure on prices as key drivers which could support local prices continue to weaken.

$1 = INR 68.66

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