Higher offers in global market
and weakening Rupee in currency market have made the overseas scrap dearer in
Indian market. Indian mills prefer to use domestic material over the imported
one as it is being transacted with cheaper rates.
Currently, domestic scrap is lower
by Rs 1,000-1,500/MT against the overseas material which is being imported by
Indian consumers. Few suppliers are selling at loss as there are no buyers in
the market at the expected levels from them (suppliers). They are offering HMS
grade at $ 400-405/MT CFR but buyers are expecting at $ 385-390/MT CFR.
In domestic market, HMS (80:20)
is being transacted with Rs 25,000/MT Ex mills Mumbai (including all taxes),
much lesser than overseas scrap i.e. at around 26,500/MT (Ex yard) UK origin.
In the western part of the country, HMS scrap offers are hovering at Rs
25,000-26,500/MT Ex mills (including all taxes) i.e. lower by over Rs 1,000/MT
than imported scrap.
“We have nothing to do in the
market at the moment as there is a big price disparity between us (buyers and
sellers). Buyers are totally giving priority to domestic scrap and stay out of
the imported scrap market. Strong Dollar is also hurting us to take positions”,
said a major overseas scrap supplier in Mumbai.
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