Domestic melting scrap prices have risen sharply by INR 500-1,000/MT (USD 7.7-15/MT) owing to limited availability of imported scrap in Indian market amid depreciation in Indian currency and firm offers in global market. Indian Rupee corrected over 3.5% in last 2 weeks post devaluation of Chinese yuan.
Ship breaking prices this week rose sharply by INR 1,000/MT. In-line, HMS prices in Mumbai surged by INR 450/MT and in Jalna by INR 350/MT. On the flip side, south market remained stable in a week’s time.
Imported scrap offers to India have remained unchanged this week. Offers from Middle East for HMS 1&2 (80:20) are assessed at USD 230/MT, CFR India. While, Shredded scrap from Europe/US is offered at USD 245-250/MT, CFR India.
Cheaper sponge iron and domestic scrap have created a shift of interest in the minds of manufacturers.
A steel smelter based in western India said, “With depreciating Rupee and stable scrap offers in global market, we have switched to domestic scrap and sponge iron. Not many importers are willing to import looking at consistent devaluation in Rupee. Domestic scrap prices will continue to trade high till Rupee finds a direction.”
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