Indian Melting Scrap Prices Inch Up on Rising Global Offers

Indian melting scrap prices moved up marginally over limited availability in major scrap consuming regions along with hike in imported scrap offers.

On weekly basis, melting scrap prices strengthened by INR 200-800/MT in major scrap based markets where scrap feed is about 70-80% and rest is either sponge iron or pig iron depending upon reasonable landed cost.

However in this duration semi finish steel prices remained stable over unpredictable finished steel movement as price range got volatile on weekly comparison.

Currently melting scrap trade reference prices hovering at INR 21,600-22,000/MT in Chennai, INR 22,700-22,900/MT in Jalna, INR 23,200-23,500/MT in Mumbai & INR 22,900-23,100/MT in Kandla; excluding of 18% GST & FoR basis.

Inline with this, CRC scrap offers were registered at INR 25,200-25,400/MT in Jalna, Maharashtra as reported by trade sources. They shared that availability is limited which may support prices in near term or could remain range bound as finished steel trades are taking place on average basis amid considering limited stock.

Further in southern region, Chennai based, scrap traders or associates shared that minor price correction might take place and they are anticipating that imports of scrap might get affected due to dull finished steel demand.

In context to global scrap, Turkey scrap procurement consistently improving from last couple of weeks and few shipments have been booked for Mar'20 delivery where scrap prices have been evolved by USD 7-10/MT W-o-W basis. Following the rise in scrap prices, rebar conversion has narrowed down. Limited improvement in rebar prices was seen which is currently hovering at USD 415-420/MT FoB, stable against last week.