Indian ferrous scrap offers reported mix price movement post GST, which was implemented on 1st July 2017.
Indian scrap trade noticed some imbalance in supply and demand, as quite a lot of small traders, who used to make unaccountable sales are finding it tough to cope up with new norms of GST.
In addition, volatility in domestic billet prices is also another major reason behind mix price trends in scrap market. Billet prices fell after GST but recovered to same levels.
Scrap offers in western region fall by approximately INR 500/MT while, in southern India it increased in the same proportion. These markets are the largest consumer & importers of the scrap in India.
HMS 80:20 offers are assessed at INR 19,500-20,000/MT (Ex-Mumbai) and INR 18,000-18,500/MT (Ex-Chennai). Prices excluding 18% GST.
Indian scrap imports remain dull over last few months as smelters prefer bulk cargoes over containerized due to difference in freight charges. Notably, Indian importers have imported 11 bulk scrap shipments in CY17 (till June), carrying a total quantity of 295,020 MT.
Offers for imported HMS (80:20) from Europe is around USD 275-280/MT and shredded at USD 310-315/MT CNF India.
Indian sponge prices have been stable due to improved demand and lower production (due to monsoons). It is expected that scrap prices will get support from lower imports and firm sponge iron prices.
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