During a month scrap offers in Indian domestic market are more or less unchanged on declining scrap imports.
Indian scrap imports since Apr’16 are falling consistently due to higher offers and depreciating rupee, which in turn supported Indian scrap prices.
Steel makers in Indian domestic market are much prefer domestic scrap over imported, falling steel prices and volatile global market are forcing them to source domestic raw materials.
Indian scrap imports during Jun’16 was at 4,81,500 MT fell by 12.3% M-o-M. Where as in Jul’16 (till 25th) imports recorded at 2,49,071/MT, decline 48.3% against Jun’16.
Current melting scrap (HMS 80:20) offers in domestic market are INR 15,500/MT ex-Mumbai (west), INR 15,000/MT ex-Chennai (south), INR 15,000-15,300/MT ex-Durgapur (east) and INR 17,000/MT ex-Ludhiana (north region); basic prices.
Meanwhile, global scrap (HMS 1&2) offers are prevailing at USD 205-210/MT (INR 13,700-14,000/MT) and shredded (HMS 1) at USD 220-225/MT (INR 14,700-15,000/MT) CNF west coast of India.
Note: July imports are till 25th.
Scrap & billet offers as on 30 Jul’16
| Particulars | Market | Size/Grade | Prices | W-o-W | M-o-M |
| Domestic Billet | Ex-Jaipur | 125×125 mm, IS 2831 | 21,900 | +500 | -600 |
| Ex-Jalna | 125×125 mm, IS 2831 | 20,700 | -400 | -1,100 | |
| Ex-Mumbai | 100×100 mm, IS 2831 | 21,200 | -200 | -800 | |
| Ex-Chennai | 125×125 mm, IS 2831 | 21,600 | -600 | -300 | |
| Ex-Hyderabad | 125×125 mm, IS 2831 | 21,000 | -500 | -1,000 | |
| Ex-Ahmedabad | 125×125 mm, IS 2831 | 21,650 | -150 | -1,050 | |
| Domestic Scrap | Ex-Alang | HMS(80:20) | 15,300 | 0 | +100 |
| Ex-Jalna | HMS(80:20) | 15,850 | -300 | -450 | |
| Ex-Mumbai | HMS(80:20) | 15,550 | -50 | -550 | |
| Ex-Chennai | HMS(80:20) | 15,000 | +500 | +500 | |
| Global Scrap | CNF India | HMS-1, Middle East | 210 | -2 | -7 |
| HMS-1&2, Middle East | 205 | 0 | -8 | ||
| HMS-1&2, S.Africa | 210 | -3 | -3 | ||
| Shredded, US | 220-225 | 0 | -5 |
Source: SteelMint Research
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