India: Domestic Scrap Prices Rise Amid Lower Availability

Domestic Scrap prices increased by around INR 300-900/MT ($4-13) W-o-W amid gain in steel prices of mid sized mills.

SteelMint learned that limited domestic generation, lack of bulk scrap bookings and improved demand of finished steels in particular regions has supported domestic scrap prices leading to slight rise in prices.

Further, Indian currency has remained volatile is one of the major factors to rethink for imports as the INR plunged by 1.64% against USD and today registered at INR 71.22 which was earlier INR 70.07 on 24th Dec'18 (M-o-M) basis.

Considering limited generation of domestic scrap on narrowed down supply, the local scrap prices moved up by INR 300-900/MT (W-o-W) in major locations and the latest prices stood at INR 29,000/MT (+/-200) in Mandi Gobindgarh, INR 26,100/MT in Alang (+/-100) and INR 24,300/MT (+/-200) in Chennai. Meanwhile in Raipur, Central India prices dropped by INR 200/MT. The prices are ex-works & excluding 18% GST.

The offers for Imported HMS scrap in Southern India (Chennai) is hovering at around USD 295-300/MT from West Africa & Shredded at USD 325-330/MT and Turning around USD 305/MT from Europe on CFR basis.