Indian import for scrap continues to fade as the mills are still preferring domestic scrap over imported scrap. The domestic market of scrap is appearing strong as seen over the past few months.
The prices of available domestic scrap are cheaper than the current prices of imported scrap. Although the prices of domestic scrap have increased by an average of rs.4000/MT
The prices of domestic on Oct’16 (Ex. Mumbai) was INR16500/MT (USD247/MT) which gradually moved up to INR21000/MT (USD 315/MT) in March’17. A total increase of approx. 27%. And on the other hand the prices for imported scrap moved from USD 220/MT to USD 290/Mt over the period of Oct’16 to March’17 showed an increase of 31%
According to Sources, “Indian trade for imported scrap is still not viable as the buyers are stuck in wait and watch position because of the high level of prices. Very few buyers which cannot work without buying imported scrap are willing to buy.”
There was a downfall in import of ferrous scrap 29% M-o-M, the reason was similar as the buyers were not ready to buy at such high prices. Local mills are preferring domestic scrap to produce carbon steel, Special steel makers are importing very small quantity of scrap periodically.
As per SteelMint Data prices have showed correction for CFR India (Shredded) & move down to USD300-310/MT levels and HMS 1&2 (80:20) at USD280-290/MT levels.
Domestic scrap will continue to be preferable if the prices for imported scrap persist to move out of reach for the buyers.
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