Indian domestic Ferrous scrap prices plunged by INR 500-600/MT W-o-W and highest price fall is recorded in North & South India. Similarly, in global market offers plunge down by US$ 13-15/MT, W-o-W.
Domestic scrap offers has come down due to liquidity crunch in Indian domestic market – post demonetization. Local Scrap generation and trading is mostly on cash basis and also due to cheaper sponge prices have turned Indian smelters to procure low cost sponge iron instead of scrap.
HMS (80:20) scrap prices are currently at INR 16,500-17,500/MT (US$ 240-255) in Western India, INR 15,500-16,000/MT (US$ 225-235) South India & INR 18,000-18,500/MT (US$ 265-272 ) in North India. Whereas, same grade imported scrap offers are at USD 235-245/MT CNF India (West & South coast).
Chennai based scrap supplier, stated “falling sponge prices & billet offers over liquidity crunch are declining domestic scrap prices.” He also added, “low production in steel making also reduced scrap buyer”
Present sponge price post 8th Nov’16 is down by INR 1,000/MT to INR 13,500-14,500/MT C-DRI, FeM 80, ex Works Central India.
Till 19th of Nov’16, India’s ferrous scrap import is around 191,600 MT. In Oct’16 the country has imported around 291,000 MT ferrous scrap.
Indian Scrap (HMS 80:20) Offers as on 25 Nov’16
| Region | Particular/Delivery | Size/Grade | Prices | D-o-D | W-o-W |
| North India | Ex-Mandi Gobindgarh | End Cutting | 21,500 | +100 | -100 |
| HMS(80:20) | 18,500 | +100 | -600 | ||
| East India | Ex-Durgapur | HMS(80:20) | 16,900 | 0 | 0 |
| Central India | Ex-Raipur | End Cutting | 17,500 | 0 | -600 |
| HMS(80:20) | 17,300 | 0 | +400 | ||
| West India | Ex-Ahmedabad | HMS(80:20) | 17,800 | +100 | +500 |
| Ex-Alang | HMS(80:20) | 17,300 | +100 | +500 | |
| Ex-Mumbai | HMS(80:20) | 16,500 | 0 | 0 | |
| South India | Ex-Chennai | HMS(80:20) | 15,500 | 0 | -500 |
| Ex-Hyderabad | HMS(80:20) | 15,700 | – 100 | -200 | |
| Global | CNF India | HMS-1, Middle East | 250 | – 8 | -8 |
| HMS-1&2, Middle East | 240 | – 13 | -13 | ||
| HMS-1&2, S.Africa | 240 | – 15 | -15 | ||
| Shredded, US | 275 | – 3 | -3 |
Prices in INR/MT
Source: SteelMint Research
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