Ferrous scrap offers in West & South India witnessed movement of INR 500-1,000/MT (3-6%) in Oct’16. The respective regions are considered as major scrap consumers and bulk imports destinations.
On monthly average basis, scrap prices were assessed at INR 17,450/MT (+6.05%) ex-Alang, INR 16,450/MT(+2.88%) ex-Mumbai (West India), INR 15,350/MT(-3.46%) ex-Chennai (South India) & INR 18,350/MT (+1.94%) ex-Gobindgarh (North India).
Slight price improvement in billet & sponge amid subdued trade activities have volatile Indian scrap prices. In Oct’16, Indian billet & sponge offers rose by INR 400-800/MT (2-4%).
During Oct’16 scrap prices in Alang & Mumbai were also on highest levels of 12 month as the similar prices range were last recorded in Oct’15 at INR 17,400/MT ex-Alang & INR 16,600/MT ex-Mumbai.
In Oct’16, Indian scrap imports were up by 7.38% against Sep’16. Indian scrap imports during Sep’16 were 2,71,000 MT; whereas in Oct’16, it recorded at 2,91,000 MT.
Presently, Indian HMS (80:20) offers in south & west regions are assessed in the range of INR 15,500-18,800/MT (US$ 230-280) ex-works. Whereas similar grade imported scrap (HMS 80:20) offers are within US$ 225-230/MT, CNF India.
In outlook market experts are anticipating that, Indian scrap prices in Nov’16 likely to remain volatile due to competitive global scrap prices and strong domestic & global sentiments.
Scrap monthly average prices since Jan’16
| Month | Alang | M-o-M | Chennai | M-o-M | Mumbai | M-o-M |
| Jan’16 | 16,150 | 600 | 13,200 | 1,100 | 15,450 | 100 |
| Feb’16 | 15,800 | 350 | 14,050 | 850 | 15,550 | 100 |
| Mar’16 | 16,500 | 700 | 15,650 | 1,600 | 16,150 | 600 |
| Apr’16 | 16,900 | 400 | 16,150 | 500 | 16,600 | 450 |
| May’16 | 16,400 | 500 | 15,450 | 700 | 16,250 | 350 |
| Jun’16 | 15,550 | 850 | 14,550 | 900 | 16,050 | 200 |
| Jul’16 | 15,300 | 250 | 14,650 | 100 | 15,700 | 350 |
| Aug’16 | 15,350 | 50 | 14,900 | 250 | 15,250 | 450 |
| Sep’16 | 16,450 | 1,100 | 15,900 | 1,000 | 16,000 | 750 |
| Oct’16 | 17,450 | 1,000 | 15,350 | 550 | 16,450 | 450 |
Basic prices in INR/MT
Sources: SteelMint Research
Leave a Reply