Indian domestic Scrap prices narrowed down amid dull demand of finished steel in across regions. This led to price corrections in raw materials too.
As per SteelMint analysis, factors to be considered as limited procurement of domestic scrap on accustomed productions through the HRM (hot rolling mills) in specified regions where finished steel demand was below to average, led to lessened bookings of raw materials (Scrap & Sponge iron).
In addition, regular bookings of imported scrap through Indian importers made healthier supply in local market, Hence this in turn price reductions in domestic scrap market of upto INR 1,000/MT ($ 15) in western region and INR 200-300/MT ($ 3-5) in southern region, as per weekly analysis.
Trade reference prices for melting scrap (HMS 80:20) as on 19th Feb’19 registered at INR 25,200-25,400/MT – Chennai (southern region), INR 24,800-25,000/MT – Jalna, INR 25,300-25,500/MT – Mumbai & INR 25,800-25,900/MT – Alang (western India).
One of the southern India based scrap importer shared that currency fluctuation may remain a concern over capital infusion through RBI & recent global sanctions on oil trade might weigh INR up to certain level and it could disturb scrap imports, this may support domestic scrap demand.
The imported scrap offers in India currently evaluated at USD 345-350/MT CNF Nhava sheva (western India) for shredded grade US & Europe origin. Meanwhile Dubai origin HMS 1&2 heard in the range of USD 330-335/MT CNF.
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