Indian domestic scrap prices fell by 10% in last one month owing to declining prices in seaborne market. Domestic prices have corrected by upto INR 1,500/MT (USD 23/MT). Whereas, global prices have corrected by upto USD 30/MT during the same period.
Market participants expect that global prices have almost bottomed out and at these levels many scrap yard holders will not operate. It is also heard that decent quantities have been booked by Indian importers and domestic prices may come under pressure once deliveries start coming.
Festive mood in Indian market is also one of the major reasons behind sluggish demand for scrap, which has dipped prices in Indian market.
Current offers for HMS (melting scrap) in Mumbai are assessed at INR 16,500/MT, Chennai at INR 13,500/MT and Alang at INR 17,200/MT. Despite such low levels, buying is still sluggish in domestic market. All prices are basic, excluding excise of 12.5% and VAT.
In outlook, market players are anticipating stability in global scrap prices as prices have hit rock bottom and there is limited stock available in the market.
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