Indian Domestic Scrap Prices fall up to INR 1,500/MT M-o-M

• Indian domestic scrap prices have fallen up to INR 1,500/MT M-o-M
• Imported scrap has shown some strength; prices up by USD 5-10/MT last week
• Alang ship breaking yard has received lesser number of ships for demolition during Sep-Nov’14

Indian domestic scrap prices have witnessed a downfall of up to INR 1,500/MT M-o-M due to falling imported scrap offers. However, imported offers moving up, domestic scrap should find some support.

Current offers for HMS 1&2 are at INR 22,200/MT (Ex- Mumbai), INR 21,000-21,200/MT (Ex- Chennai) and INR 23,000/MT (Ex- Alang).

Indian Scrap traders do not see a major fall in domestic prices as landed cost of imported cargo has come in line with domestic offers.

“Scrap offers are stable at the moment but certainly demand has come down. Looking at the landed cost of imported material, there are thin chances that prices in domestic market will fall”, said a scrap trader based in Mumbai.

Current offers for imported HMS 1&2 stand at USD 310-320/MT, CIF India which is equivalent to 21,000-21,200/MT on ex- port basis.

On the other hand, steel mills believe that there is some scope of correction looking at the falling Sponge iron prices.

Current offers for Scrap (HMS 1&2) and Sponge iron (C-DRI)

All prices are basic; excluding Excise and VAT

Numbers of Ships for breaking at Alang  falls Significantly

It was also observed that number of ships that had arrived for breaking at Alang has come down drastically in the last few months. During April to July this year, on an average 31 ships were demolished each month; which went down to 21 in August and about 11-12 during September & November.

Alang is Asia’s largest ship breaking yard, which is located in Gujarat.