In the month of December, Indian ferrous scrap prices registered price movement of INR 500-1,000/MT (US$ 8-15) across large import destinations as well major scrap consuming regions like South, West & Northern India.
On monthly average basis, scrap prices were assessed at INR 18,100/MT (+4.02%) ex-Alang, INR 17,250/MT (+4.23%) ex-Mumbai (West India), INR 15,150/MT (-3.50%) ex-Chennai (South India) & INR 18,850/MT (+0.80%) ex-Gobindgarh (North India).
Trades in Scrap were bearish during 1st half of Dec’16 owing to demonetization. However, since prices began to rise semis, scrap trades also improved . In addition, higher imported scrap prices have pushed domestic scrap suppliers to keep prices strong despite heavy cash crunch in the market.
Current offers for HMS (80:20) at INR 15,500-16,000/MT (US$ 225-235) in South region & INR 17,500-18,500/MT (US$ 255-275) in Western India, ex-works. Where as similar grade imported scrap (HMS 80:20) offers are within US$ 250-260/MT, CNF India (South & West Coast).
In outlook it seems that, Indian scrap prices may remain supported in Jan’17 looking at strong demand. Also, the supply of imported scrap get seasonally affected which is an additional plus point for Indian scarp trade.
Ferrous Scrap monthly average prices since jan’16
| Month | Alang | M-o-M | Chennai | M-o-M | Mumbai | M-o-M |
| Jan’16 | 16,150 | -600 | 13,200 | 1,100 | 15,450 | -100 |
| Feb’16 | 15,800 | -350 | 14,050 | 850 | 15,550 | 100 |
| Mar’16 | 16,500 | 700 | 15,650 | 1,600 | 16,150 | 600 |
| 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 |
| Oct’16 | 17,450 | 1,000 | 15,350 | -550 | 16,450 | 450 |
| Nov’16 | 17,400 | -50 | 15,700 | 350 | 16,550 | 100 |
| Dec’16 | 18,100 | 700 | 15,150 | -550 | 17,250 | 700 |
Prices in INR/MT
Source: SteelMint Research
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