Melting scrap offers in Indian domestic market down by approx INR 1,000/MT in a week.
Domestic scrap offers have reduced due to sharp fall in global scrap and domestic billet prices. Also, cheaper sponge availability is pressurizing domestic scrap suppliers to cut their offers in order to attract buyers.
In a week, global billet offers fell by around USD 45/MT (INR 3,000/MT); led to pressure on imported scrap offers by USD 30/MT (INR 2,000/MT). Following this, prices for both products in west and south coast of India have corrected by upto INR 2,000/MT in the duration.
Current offers for 125*125 mm billet are prevailing at INR 22,800/MT in west India and scrap at INR 16,000/MT. Meanwhile, global billet offers are assessed at USD 320/MT, FoB China and shredded scrap of US origin at USD 275-280/MT, CFR India for Jun’16 deliveries.
Indian Domestic scrap offers as on 17 May’16
| Region | Particular | Size/Grade | Prices | W-o-W | M-o-M | Q-o-Q |
| North | Ex-Ludhiana | End Cutting | 18,100 | 1,000 | 750 | 1,450 |
| Ex-Gobindgarh | End Cutting | 20,600 | 1,000 | 900 | 1,500 | |
| HMS(80:20) | 18,100 | 1,000 | 900 | 1,500 | ||
| East | Ex-Durgapur | HMS(80:20) | 16,000 | 1,000 | 700 | 100 |
| Ex-Kolkata | HMS(80:20) | 16,400 | 1,000 | 700 | 100 | |
| Central | Ex-Raipur | End Cutting | 18,500 | 350 | 600 | 1,800 |
| HMS(80:20) | 17,300 | 500 | 700 | 1,300 | ||
| West | Ex-Ahmedabad | HMS(80:20) | 16,700 | 1,000 | 400 | 400 |
| Ex-Alang | HMS(80:20) | 16,400 | 600 | 200 | 600 | |
| Ex-Jalna | HMS(80:20) | 16,600 | 750 | 700 | 600 | |
| Ex-Kandla | HMS(80:20) | 16,200 | 600 | 200 | 600 | |
| Ex-Mumbai | HMS(80:20) | 16,000 | 500 | 900 | 200 | |
| South | Ex-Chennai | HMS(80:20) | 15,500 | 500 | 1,000 | 1,000 |
| Ex-Hyderabad | HMS(80:20) | 16,400 | 300 | 100 | 700 |
Basic prices in INR/MT, all taxes excluded
Source: SteelMint Research
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