Domestic Scrap this week opened with a
price hike due to the rise in Ingot prices and severe shortage of raw materials
i.e. Iron ore and Sponge Iron. Prices moved up by Rs 100-300/MT at major
mandis’ like Jalna, Alang and Mandi Gobindgarh.
HMS Scrap in Mandi Gobindgarh reached
Rs 27,200/MT followed by a hike in Ingot prices due to extended power cuts.
“Short supply of scrap in the market
has made it expensive. Moreover, slightly improved buying activities have lent
support to the price hike and we expect prices to move up further”, said a
trader based in Jalna.
An importer based in Kandla, stated that the
impact of depreciating Rupee against US dollar is expected to come into effect
this month. It will make Importers pay more for their purchases and thereby
impacting their credit cycles. Depreciating Rupee is also giving Local traders
a chance to hike their prices as market players now preferring domestic scrap
over expensive imported ones. Moreover the on-going short-supply of scrap in
the domestic market indicates for another round of price rise by Rs
200-300/MT in the coming weeks”
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