Melting ferrous scrap prices in Indian domestic market continue have its down ward mode, decline by INR 1,500-3,000/MT (USD 22-44) on monthly basis owing to falling steel prices along with better availability of scrap in local market on increase imports specifically in West & South regions, who are the major importers & consumer of melting scrap.
As per assessment, Indian Steel (Billet & Rebar) prices drop by around INR 5,000/MT (USD 73) in a month over seasonal demand concern.
Further, as per data maintained by SteelMint, scrap imports in India have increased to 465,000 MT in May’18 & about 350,000-400,000 MT in Jun’18 as against monthly average imports of less than 350,000 MT during Jan to Apr’18. This has improved availability of scrap in domestic market.
In addition, high generation of ship breaking prior to approaching monsoon is being believed to be another key factor which kept scrap prices on down trend from mid June’18. India, is the second largest ship recycling country in the world.
The impact of this has primarily been felt in Gujarat, West India where Steel mills depend heavily on ship breaking for raw material. The extent of the dip in ship breaking activity is such that scrap prices in Gujarat have drifted down to INR 2,500/MT (USD 36) on monthly basis.
Prices in another major markets of scrap- Mumbai/Jalna – West India & in Chennai – South region being registered fall of INR 1,500/MT (USD 22) & INR 3,000/MT (USD 44) respectively, in a month duration. The reason behind slump in prices by participants are stated constant fall in Billet prices and healthy availability of local scrap.
The current prices of melting scrap in major markets hovering at INR 22,500-22,800/MT ex-Chennai – South India, INR 24,500-25,000/MT ex-works, Maharashtra/Gujarat – West India, INR 25,000/MT ex-Durgapur – East India & INR 24,000-24,500/MT ex-Mandi Gobindgarh – North India.
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