In the first month of CY17, Indian ferrous scrap prices registered price gain by INR 600-1,200/MT (USD 9-18) across bulk import destinations as well major scrap consuming regions like South, West & Northern India.
Sharp increases in semis prices have strengthen Indian domestic scrap prices. During the month, prices of both semis have increased – that is sponge by INR 700-1,400/MT (8-10%) & Billet by INR 1,400-1,800/MT (5-7% ).
However, during the same duration, imported scrap offers fell by USD 20/MT and evaluated, HMS (80:20) at USD 240-245/MT & US Shredded at USD 265/MT; CFR India. Limited purchase by Turkey due to political issue in the country and increase scrap generation & supply by US has put pressure in the global scrap prices. Thus, prices are continuously on downward mode.
On monthly average basis, Indian scrap prices during Jan’17 were assessed at INR 19,000/MT (+4.97%) ex-Alang, INR 18,200/MT (+5.51%) ex-Mumbai (West India), INR 16,250/MT (+7.26%) ex-Chennai (South India) & INR 18,950/MT (+0.53%) ex-Gobindgarh (North India).
In outlook for Feb’17, market experts believe that price pressure will continue in Indian domestic scrap looking at the sharp fall in global scrap prices as well sluggish trade activities in the semis market.
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