Competitive imported scrap offers in global market are persistently attracting Indian steelmakers. This in turn has led to decline in Indian ferrous scrap prices by INR 700-1,000/MT M-o-M across major markets like Mumbai, Punjab, Chennai and Gujarat.
In contrast to domestic HMS scrap prices, imported HMS scrap offers have dipped by USD 15-20/MT (INR 990-1,320/MT) M-o-M amidst lull buying activities in Turkey and cheaper Chinese billet offers in global market.
Meanwhile, shreded scrap offers to India have reduced by USD 20-25/MT (INR 1,200-1,500/MT) M-o-M.
Recently, it is also heard that an Indian importer has concluded a deal of about 30,000 MT shredded scrap of US-origin at USD 225-227/MT, CFR India. This will surge the supply of imported scrap in domestic market, resulting in further pressure on Indian scrap sellers.
Current offers for HMS (melting scrap) in Mumbai are assessed at INR 18,000/MT, Chennai at INR 16,500/MT and Alang at INR 18,500/MT. Despite such low levels, buying is sluggish in domestic market.
In outlook, market players are anticipating further downfall in scrap prices, both in domestic and global markets looking at weak market sentiments.
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