Indian smelters based in West & South regions are largely procuring domestic scrap over imported due to low cost and volatile billet prices.
Current offers for HMS (80:20) scrap in India’s West region Mumbai are at INR 18,000-18,500/MT (USD 265-270) & South, Chennai at INR 16,000-16,500/MT (USD 235-240); ex-works. While, same grade imported (Middle East) offers are prevailing at USD 265-270/MT CFR India (West & South coast).
On M-o-M, billet prices in West & South India are volatile by INR 1,000-2,000/MT (USD 15-30). While, scrap prices by around INR 500-1,000/MT. Strong demand has made minor price change in domestic scrap.
Smelters in West, South & North India are totally dependent on scrap (domestic & imported) they usually melts 75-85% scrap and rest is sponge iron. Sponge they procure from Central, East & South India.
Source: SteelMint Research
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