Melting scrap prices in Indian domestic market remained on higher side amid limited availability of locally generated scrap as well as lessened imports due to high offers from global suppliers.
As per SteelMint statistics, bulk scrap import figures was registered at 291,590 MT in CY19, which is down by 43.39% against 515,212 MT in CY18. Falling bulk scrap import from overseas market ultimately resulted in lowered supply in local market. This led to hike in price range across regions, particularly in south region (Chennai Market) which marked surge of INR 800-900/MT on weekly comparison basis.
Further, the participants assuming that scrap prices might remain range bound with slight fluctuations owing to upcoming (Pongal) holidays for almost a week’s time in south region could affect trade volume up to certain level.
As finish steel prices gained strength from last couple of weeks, so the production utilization improved and proportionate of scrap consumption observed on healthy range amid improved procurement along with strengthening substitute products (steel grade – Pig Iron & Sponge Iron).
Overall conclusion behind strengthening prices in domestic melting scrap is limited segregation of scrap in one of the major exporters market i:e; USA & Europe amid new year holidays and limited acquiring means, tight availability leading to high offers which might maintain firm offerings from Middle East sellers as well.
— Current melting scrap trade price is hovering at INR 22,700-23,000/MT & CRC scrap at INR 25,000/MT in Jalna. Meanwhile in Chennai, melting scrap prices registered at INR 23,500-23,800/MT FoR.
— Whereas last week imported scrap deals were reported at HMS (80:20) stood at USD 300-305/MT from Dubai, USD 305-310/MT from Australia & USD 295-300/MT from West Africa (depending upon loading quantity), CFR India.
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