Indian ferrous scrap offers climbed up by INR 700-1,200/MT M-o-M in Sep’16. Highest price rise were recorded in Alang and Chennai.
Falling scrap imports due to expensive offers, short supply of sponge iron & Pig iron have supported Indian scrap market. As a result scrap offers in Mumbai and Gobindgarh have moved up by INR 700-800/MT. While, in Alang and Chennai it surge by around INR 1,200/MT (M-o-M).
In Sep’16, Indian scrap imports fell by 17% against Aug’16. Indian scrap imports during Aug’16 were 3,26,500 MT; whereas in Sep’16, it recorded at 2,71,000 MT.
Presently, Indian HMS (80:20) scrap offers are assessed in the range of INR 16,000-19,200/MT (USD 235-285) ex-works. Whereas, imported HMS scrap offers are within USD 220-230/MT and shredded at USD 230-232/MT CNF India.
SteelMint also assessed that Indian scrap was traded at 5 months high levels. On monthly average basis, prices are assessed at INR 16,450/MT (+7.33%) ex-Alang, INR 16,000/MT(+4.85%) ex-Mumbai, INR 15,900/MT(+6.72%) ex-Chennai and INR 18,050/MT (+6.02%) ex-Gobindgarh.
In outlook, It seems that scrap offers in domestic market have limited scope for further increase as Indian smelters have resumed scrap purchases from the global market due to competetive offers.
Scrap monthly average prices since Apr’16
| Month | Alang | M-o-M | Chennai | M-o-M | Mumbai | M-o-M |
| Apr’16 | 16,900 | +400 | 16,150 | +500 | 16,600 | +450 |
| May’16 | 16,400 | -500 | 15,450 | -700 | 16,250 | -350 |
| Jun’16 | 15,550 | -850 | 14,550 | -900 | 16,050 | -200 |
| Jul’16 | 15,300 | -250 | 14,650 | +100 | 15,700 | -350 |
| Aug’16 | 15,350 | +50 | 14,900 | +250 | 15,250 | -450 |
| Sep’16 | 16,450 | +1,100 | 15,900 | +1,000 | 16,000 | +750 |
Prices in INR/MT
Source: SteelMint Research
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