With Rupee de-valuation against dollar and sluggish steel demand has made scrap offers to Indian markets fall by $10-15/t. HMS 80:20 is being offered at $420/t, CFR Mumbai, down by $15/t from last week.
Market sources say that there is further scope of correction as there is no buying interest at these levels also and prices are expected to correct further by $10-15 in coming weeks.
“Indian domestic scrap is cheaper by Rs 1000-1500/t compared to imported scrap.With Rupee over 55 per US $, it is almost not feasible to import scrap.” said a induction manufacturer based in Mumbai.
With scrap prices continuously falling in Turkey,US and Japan on slowing demand, it is anticipated that Indian buyers will wait for further fall.
“We are getting offers from Europe at $430/MT but not willing book on high Dollar value. Rupee is likely to remain between 55-56/USD this month, so we expect offers to come down by another 10-20/MT CFR”, said an importer based in Ahemdabad.
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