Indian scrap and MS billet offers have declined by the same proportion of INR 300-500/MT W-o-W and INR 700-1,000/MT M-o-M.
Falling billet prices and cheaper sponge availability are pressurizing domestic scrap suppliers to cut their offers.
On the other hand, global billet and scrap offers have risen by USD 5-10/MT (INR 350-700/MT) owing to Ramadan festival, which has made trade activities poor and increased Chinese domestic billet offers.
Current HMS (80:20) scrap prices in domestic market are hovering in the range of INR 14,500-18,000/MT (USD 215-265/MT) ex-works.
Meanwhile, global HMS scrap offers are prevailing at USD 215/MT (INR 14,600/MT) and shredded at USD 230-235/MT (INR 15,600-16,000/MT) on CNF Indian West Coast basis.
It is to be noted that since a long time Indian buyers have not been preferring imported scrap amid cheaper scrap and sponge availability in Indian domestic market. As a result, scrap import fell during Jun’16 (till 13 Jun’16) and recorded at 1,80,000 MT, which was 5,49,000 MT in May’16 .
Leave a Reply