India: Trade Activities Remain Weak in Domestic Scrap Market

Trades in India’s domestic scrap market remains weak amid slow demand of finish steel across regions along with lowered production through the large as well as medium/small scale mills, which has resulted lowered demand for scrap.

As per daily assessment, the local melting scrap prices slightly fluctuate by INR 100-200/MT. However on weekly and monthly comparison, prices went down by INR 500-800/MT (USD 7-12) across regions.

West region (Maharashtra) based few market participants shared that scrap availability is on average basis and price range may drop slightly with active participation of traders post to Eid celebration as most of the stockiest usually absence from the market during Ramadan festive season.

Similarly participants in Southern region are assuming further price corrections up to certain level considering slump in rebar prices by around INR 700/MT on monthly basis. In line, Semi-finish (billet) prices fell by INR 400-500/MT, as per weekly and monthly basis.

In addition the smelters in Southern India are not looking for any major procurement due to equivalent price range of domestic & imported scrap. For instance the offers of West African scrap hovering around USD 310/MT, this landed cost would be around INR 23,500-23,600/MT (INR 69.37 & logistic charges around INR 2,000-2,100/MT), meanwhile domestic scrap available at INR 23,400-23,600/MT.

Further, SAIL (Steel Authority of India Limited) has conducted a e-auction on 28th May’19 to sale of about 20,249 MT Scrap from its Bhilai Steel Plant (BSP). As per sources information with SteelMint, near to 16,275 MT (80%) material has been sold out on this auction, while remaining quantity remains unsold.

Quantity in MT
Source – SteelMint Research