Local
ferrous scrap prices have corrected for 3 days in a row at most of the major
mandis'. Sentiments in the local scrap market remains weak and it has pulled
down scrap prices by Rs 500-1200/MT at places like Durgapur, Kolkata, Mumbai
and Alang.
Scrap
suppliers in Durgapur have eased their offers as buyers have held their
purchases amid weak sentiments and uncertainties in the market. Prices have corrected
by Rs 1,100/MT from previous trade prices.
In
Mumbai, prices have corrected by Rs 500/MT despite of shortage of the product. Local
buyers are unwilling to book new orders as they expect prices to fall further. Scrap
importers on the other end also prefer to wait and see in anticipation of
further appreciation in Rupee again Dollar.
“We
don't find any specific reasons for the correction in scrap prices. Low trading
activities and appreciating Rupee (which will make imports cheaper) might be
the reasons for such corrections. Prices for local scrap were already high and
now it has bottomed out. Going further, it is likely to remain at the current
level in the days to come”, said a trader based in Kandla.
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