Domestic Scrap prices went down
marginally by the end of the week after seeing a rise of Rs 100-700/MT.
whereas, the demand for scrap could be scaled between moderate to low. Some of
the reasons why domestic Scrap is becoming expensive in the domestic market
are:
– Limited availability of the
product
– Shortage of Imported Scrap in the
market which is helping domestic scrap to cover the supply gap
– Rise in Ingot prices due to
slight improvement in demand for finished goods
According to a trader based in
Raipur, “Transporter's strike since last 2 days has blocked the movement of the
cargoes. And Scrap prices have eased by Rs 200/MT due to the absence of buying
interest. However, we expect the prices to remain firm in the meanwhile as
availability of sponge iron is limited. More clarity is said to be achieved
after the strike ends and movement of cargoes begin”
“International Scrap buyers are hesitating to
book new orders looking at the gloomy market scenario. Depreciating rupee
against dollar has made imported Scrap dearer in the market and it has reached
the level of US$ 485-490/MT. So, most of the buyers are shifting to the local
market. However, prices in the near term look to remain same”, said another
trader based in Mumbai.
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