Domestic scrap prices in India fell down on account of poor demand and falling steel prices. As demand is going down consistently, manufacturers are reducing their production capacity, which has also reduced the demand for domestic scrap.
In last 2 days Mandi Gobindgarh and Bhiwadi scrap prices dropped by Rs400/MT and Rs 800/MT respectively. Traders based at Bhiwadi market are cut offers, due to heavy rainfall and lesser buying interest.
Scrap offers at Alang are not showing any sign of improvement and prices are falling consistently. During this week, prices have sharply fallen by Rs 900/MT from Rs 23,300/MT to Rs 22,400/MT. A native trader based at Alang says “we don't expect much improvement in buying, because of heavy rainfall”.
However scrap prices in coastal India have moved up slightly on improved Rupee against the Dollar, which has made imports more feasible. After imported scrap offers move up by 10-15US$ in Mumbai, domestic prices also quickly rebounded by Rs 400-500/MT. HMS was last traded at Rs 22,100/MT in Mumbai. Still overall buying sentiments remained subdued.
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