India domestic scrap market continuous improves over shortage and low viability of imported scrap. Scrap is also being witnessed due to increase production of Billet and shortage of Sponge Pellet.
The domestic scrap market increased by Rs 900/MT W-o-W and by Rs 2,450/MT M-o-M. Major hikes is witnessed in western India like Alang, Kandla, Jalna, Bhiwadi and Mumbai that is based on scrap as compare to Eastern and Central India where sponge usage is more.
Trade in Indian imported scrap market is silent with respect to dilution of rupees against the dollar. Last month imported scrap quantity slip by 30% M-o-M with Qty 3,70,000 MT imported over an average quantity of Qty 5,50,000 MT.
Dollar appreciation has opened Billet export viability to neighboring country that has increased the semi finished production. It's being heard Rourkela and Durgapur exporting Billet to Nepal and Bangladesh. Similarly SAIL plans to export Billet of approx quantity 1,00, 000 MT in coming months to middle east country.
Similarly, Iron ore pellet which is being process to make sponge pellet (substitute of scrap) were exported from India to China and Oman . Till date in last two month India exported quantity 2,50,000 MT.
SteelMint assessed that sum of the quantity 1,50,000 MT (Imported scrap) and 2,50,000 MT (Iron ore Pellet export) given the momentum of domestic scrap prices.
Leave a Reply