Scrap prices fall by INR 500/MT owing to falling Billet prices, however Sponge iron prices remain stable amid short supply of Iron ore.
Ferrous Scrap contributes nearly 15% of India’s crude steel production. The market has witnessed a correction in the range of INR 100-500/MT W-o-W across major markets. Current offers in domestic market are trading between INR 24,000-26,000/MT (basic prices, excluding taxes).
Sponge iron contributes about 25% of India’s crude steel production. Sponge prices remain stable owing to low supply of Iron ore. Current offer are hovering in the range of INR 19,500-21,500/MT (Ex-Works).
Prices in Jalna, India’s one of the largest smelting region, noticed a correction by INR 500/MT on account of slowdown in finish steel buying and production cut.
“Manufacturers in Jalna are expected to reduce their production time to 12 hours a day from 1st week of August owing to poor demand in finish steel. Prices may see some correction,” said a trader based in Jalna.
Sponge Prices remain Unchanged
Falling Billet prices have limited effect on Sponge iron prices. SteelMint has learned from the sources that there is shortage of Sponge iron in the market, which will lead prices to remain at the same level or increase slightly from the current levels.
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