Sharp
correction in Ingot prices pulled down ferrous scrap prices by Rs 500-1000/MT
at most of the major mandis' including Mumbai, Mandi Gobindgarh, Alang and
Jalna. Scrap buyers held their purchases anticipating further price
corrections.
Correction
in imported scrap offers also impacted the local ferrous scrap market in
Mumbai. Suppliers lowered their prices for ferrous scrap by Rs 500-1000/MT from
last week and they expect prices to correct further as cheaper imports will
force them to correct their prices in the local market.
Slowdown
in steel demand in Hyderabad also corrected scrap prices by Rs 1000/MT from
last week. Prices for Ingot and finished goods also went down in the market.
“The
correction in scrap prices in line with the industry expectations as prices had
already reached their peak during this month. Depreciation in Dollar will also
make imports cheaper in the coming weeks and this impact the local scrap
prices”, said a trader based in Mumbai.
“Alang steel market largely
follows Mandi Gobindgarh where prices for Ingot & Scrap both have reduced.
So, local ferrous scrap market might see further correction in prices as well”,
said a trader based in Alang.
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