Domestic ferrous scrap prices rise by Rs 500-1000/MT this week

Domestic ferrous scrap prices move up by Rs 500-1,000/MT
this week on short supply and lesser imported cargoes in the local market. Following
are few reasons which lent support to firm prices:

Short
Supply: Lesser imports made the supply of the imported scrap
critical and short supply of the material prompted ferrous scrap sellers to
raise their prices during the last week.

Election in Northern Region: Elections
have kept the trading activities low in Northern India especially at mandis'
like Muzaffarnagar, Ghaziabad. Availability of scrap was also limited and it leads
to hike in prices in these regions. However, prices are likely to fall once the
election gets over. 

Fluctuating Rupee: Local
buyers have held their purchases over the growing uncertainties associated with
the value of Indian Rupee against Dollar. Fluctuating Rupee forced scrap
importers to hold their purchases.

“Imported material will reach at higher prices in the
coming weeks in line with the improved demand in the international market for
ferrous scrap. This will lend support to the domestic ferrous scrap prices”,
said a trader based in Mumbai.

According
to a trader in Ghaziabad, “Prices might see a slight correction in the Northern
region post election, as suppliers may cut their offers to attract more buyers.”