Indian domestic melting scrap prices moved down, followed by falling imported scrap offers along with dull finish steel demand. As per SteelMint’s assessment, domestic scrap prices contracted by INR 300-900/MT in major locations of south, west & northern India.
Bids of few southern India based industrialist remained on lower side. Anticipating further price correction in near term, they have continued to lower their bids further considering limited lifting of finished steel products by trade associates.
Following drop in scrap prices both domestic or imported, the billet margins (conversion spread) remained strong and is currently hovering at INR 8,000-9,000/MT (from melting scrap to billet) than the required conversion of INR 7,000-8,000/MT, as shared by market sources based in South & Western India.
Further, few West African containerized scrap is notified USD 270-272/MT in Chennai market, the landed cost of which is around INR 21,200-300/MT. However domestic melting scrap or locally named as godown melting offers are reported at INR 21,900-22,200/MT which is INR 700-900/MT higher as compared to imported material.
Further, recent imported containerized trade which would be reaching after 30-45 days is approaching furnace owners to stretch billet prices amid costlier landing imported scrap which was booked 30-45 days back along with considering improve conversion margins.
Trade participants anticipate that domestic melting scrap prices might witness correction looking to dull finish steel movement.
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