Scrap prices in Alang, India's largest ship breaking yard, which
is a also major source of rolling plates for states like Punjab, MP, Gujarat
and UP has fallen by Rs 200 in early trade. Current offers for HMS scrap stands
at Rs 22600-700/t (Basic Price) and rolling plate of size 4 ANI is at Rs 23,900/t,
6 ANI is at Rs 24,800-900/t
In conversation with traders based in Alang, SteelMint assessed
that there is limited scope of further correction in scrap prices. Only reason
prices have fallen in recent time is many induction furnaces have cut
their production due to hike in power tariffs which have reduced demand for HMS
scrap.
“Demand is not that bad for rolling plates, only thing is off-take
for finished steel is low. On the other hand melting scrap prices have gone
down as many induction furnaces have cut productions. But we see prices have
almost bottomed out and there is little scope of further correction”.
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