Poor demand for finished steel resulted in price reduction of scrap in Mumbai. Scrap prices fell by Rs 600-900/MT in last three days. Heavy scrap today was offered at Rs 21,800/MT (Basic), because of fall in ingot prices by Rs 1,700/MT as seen in the M-O-M change. At same time prices for Re-bar also fell by Rs 1,600/MT in a month's time.
Meanwhile, scrap prices in Durgapur and Kolkata too fell sharply by Rs 500/MT on low buying interest from manufacturers. Scrap traders were trying to hold the prices in spite of the low ingot prices which were already down by Rs 900/MT. Low demand for scrap and falling purchase volume in the market pressurized them to reduce its prices. However, today's offers for HMS scrap in Durgapur is at Rs 26,200/MT and in Kolkata at Rs 25,500/MT (Including all).
A well known trader based at Mumbai says that “Demand for finished steels goes down consistently, as the demand from local construction sector is less by 20% at present, which was around 40-60%”.
Whereas, Bhavnagar ship cutting prices dropped by Rs 300-500/MT in last two days.
HMS prices in Jalna went down by Rs 300/MT and was offered at 25,500/MT (Including all).
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