Indian domestic scrap prices remained slight fluctuate in across regions amid slight price movement in billet market where the prices registered volatility by INR 400-500/MT on weekly basis.
In line finish steel, the demand is little bit slow than the average levels owing to less activity on election season. However, considering slightly lower availability of domestic scrap, the assumptions are high for stability in scrap prices in near term.
On the other hand global scrap prices gradually rise by USD 5/MT on weekly basis, this may led to support domestic scrap prices up to certain level.
The smelters in southern India, generally imports scrap from West Africa along with other regions which is currently reported at around USD 310-315/MT (HMS 1&2) CNF Chennai, this landed cost would be around INR 24,000/MT FoR, where as domestic scrap is available at INR 24,400-24,600/MT FoR Chennai.
Whereas, western region based importers generally prefer Middle East scrap (HMS 1&2), which is hovering at around USD 325/MT CNF India, this landed cost would be equivalent to prevailing domestic offers at around INR 25,000/MT ex-Mumbai/Jalna.
Further, currency depreciation may also slightly costlier imported scrap due to evolving crude oil globally which is being notified by Trump administration that Iranian crude won’t get any further exemption after 2nd of May’19.
Another factor could be considered for supportive domestic scrap prices may be approaching Ramadan festival which will be celebrated from 5th May to 4th Jun’19 and interestingly UAE has remained top ferrous scrap exporter to India since the data retained from SteelMint and registered at 4.95 MnT which holds share of around 16% from CY13-2019(till January).
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