Falling billet prices and resumed scrap import, pulled down domestic scrap prices. On W-o-W, offers had fallen by INR 200-500/MT.
Currently, domestic HMS scrap offers in west & south regions are at INR 16,000-17,500/MT (USD 235-260) ex-works. Similarly, imported scrap offers are also inline at USD 220-225/MT CNF India (INR 15,000/MT), exclusive import duty and port clearance.
Indian billet prices in a week have fallen by INR 700-1,000/MT. This led to prices corrections in scrap. Billet manufacturers in west, south & north regions usually melt 75-80% scrap and rest sponge iron.
It should be noted, India’s monthly ferrous scrap import was recorded lowest in Sep’16 during last 18 Months. India imported around 271,150 MT ferrous scrap in Sep’16; with a registered downfall of 17% M-o-M and downfall of 35% Y-o-Y. The nation imported around 326,186 MT ferrous scrap in Sep’16, whereas 420,306 MT in Sep’15.
Scrap traders in west India reported scrap imports are gradually picking up. Also few (approx 9) bulk shipments heard to be booked by Indian manufacturers that are expected to be shipped before or around Nov’16. Booking price for this mix shredded and HMS cargo is around USD 220-235/MT.
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