Falling demand of finished steel has reduced MS Ingot prices in the domestic market to 10 months low in Raipur, Durgapur, Rourkela and Mandi Gobindgarh.
MS Ingot prices in Raipur, Durgapur & Rourkela (Sponge based market) have corrected by INR 700-1,400/MT. Whereas, Sponge iron prices have declined only by INR 300-500/MT in a month’s time.
Scarcity of coal & Iron ore along with limited production is supporting Sponge iron prices. Therefore, limited correction is witnessed in Sponge prices as compared to MS Ingot/Billet prices.
Ingot prices in Scrap based market like Mumbai, Chennai & Ahmedabad have corrected by INR 1,000-1,600/MT. In similar line, Scrap prices have fallen by INR 1,000-2,000/MT M-o-M.
Falling Scrap prices in the global market and strong US dollar against Euro are the prime reasons behind falling Scrap prices in the domestic market. It is noticeable that imported Scrap offers have fallen by around USD 30/MT (INR 1,900/MT) in a month’s time owing to weaken Iron ore price in the international market.
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