As an informed exporter, it is important to know the major economic indicators of the countries where you are exporting. This is important to foresee if there are any possible chances of payment defaults. If there is, changes can be made in the payment terms. Hence, in order to aid this decision making process, we present the findings provided by the Euler Hermes in weekly frequency. Major indicators like GDP, sectoral development changes, major economic policies decision, sentiments after any new political appointment, bank rate changes etc. help in painting the economic condition of the country for the whole week.

Global metal and steel industries face a continuous deterioration in market conditions amid significant macroeconomic and geopolitical challenges in 2019. These factors, combined with weakening demand in key steel markets such as China and India, higher commodity prices, and decreasing steel prices are having an impact on many producers, and contribute to a depressed market outlook.

Many Indian metals and steel businesses are highly leveraged and heavily depend on bank financing for their working capital requirements. However, due to a high level of non-performing assets in the sector, with some larger companies defaulting and struggling to repay debt, banks are now unwilling to provide credit to the industry. This is causing additional liquidity issues for many businesses.

Five steel companies, which account for a fifth of India’s crude steel capacity, have already filed for insolvency proceedings and are in a resolution process. Stronger companies have taken over those stressed assets in order to enlarge their domestic market share. Due to the ongoing consolidation in the market, with larger players acquiring smaller and troubled businesses, a further increase in insolvencies is not expected in the short-term.

Payments in the Indian metals and steel industry take between 60 to 90 days on average. Payment delays are common. Insurance Companies remain cautious with trading firms and non-incorporated entities, segments where they have witnessed several credit insurance claims in the past. Insurance Companies insist on reviewing companies with their latest audited financials, also taking into account customer profiles and credit management capabilities.

Reference: https://atradius.sg/reports-and-services/market-monitor-metals-steel-india-2019.html