SteelMint domestic
Ferrous Scrap Index continues to fall by 1.95% this week and reaches another low
to 87.65 points on Saturday.
Fewer trades and
falling steel demand (especially in finished sector) continue to pull the
Indian scrap prices down. Ferrous scrap prices touched a 8-10 months low
mark this week earlier and continue to hold the downward pattern.
Offers for HMS (80:20) in Mandi Gobindgarh fall
by Rs 1,800/MT this week in line with falling Ingot prices. HMS (80:20) traded
at Rs 27,200/MT on Saturday i.e. down by Rs 200/MT from previous trade.
Moreover, HMS scrap
from ship breaking also traded lower at Rs 23,400-500/MT in Bhavnagar, dropped
by Rs 900/MT this week.
Offers for rolling
plates Plate cutting crumble by Rs 600-800/MT this week. Scrap
of 4 ANI plate traded at Rs 23,800/MT, 6 ANI at Rs 25,000/MT and 12 ANI at Rs 26,000/MT
on Saturday.
“Ships arrival has
been slowed down in the past few weeks. It is not feasible to supply the ship
breaking scrap at current price levels. Market is entirely unpredictable and it
might move either ways”, said a market source in Bhavnagar.
In addition, futures
contract (Steellong) has been withdrawn by NCDEX on new norms of BIS
by Indian government. Market participants anticipate that pries
should stabilize as it will be derived on demand supply situation rather than speculation.
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