Indian Domestic Scrap Market Faces Volatility: Will Import Offers Decline?

The Indian scrap market has been experiencing price fluctuations across various regions due to semi-finished and finished steel products’ price movement. It has impacted import offers as they have declined due to the slow buying from Turkey, the largest scrap importer in the world, and the increase in the local generation of scrap.

Price Movement In India

• The Indian scrap prices have been varying across regions fluctuating prices in the billet and TMT markets. The prices have been on a positive trend in the western part for a week. Whereas, in other regions, the prices have been volatile with fluctuations ranging between Rs 200-500/ton.

• Central, Eastern, and Northern India: Scrap prices in regions like Chhattisgarh, West Bengal, Tamil Nadu, and Punjab have remained volatile following the fluctuations in the billet market. HMS (80:20) prices vary by Rs 300-500/ton week-on-week and have been reported at around Rs 40,500-41,000/ton ex-works, Mandi Gobindgarh, Rs 39,000-39,500/ton ex-Raipur, Rs 40,000-40,500/ton ex-Durgarpur, and Rs 36,500-37,000/ton ex-Chennai.

• Western India: The scrap prices in Gujarat and Maharashtra have seen a rise of around Rs 500-2,000/ton week-on-week. HMS (80:20) prices currently stand at Rs 39,500/t ex-works, Alang (Up by Rs 2,000/ton week-on-week), and Rs 38,500-39,000/ton in Jalna (rose by Rs 500/ton in a week).

• Semi-finished Steel price rise and active scrap buying by the induction furnace mills in the region have influenced scrap suppliers to keep prices higher. Billets price in Maharashtra and Gujarat have reported a surge of around Rs 500-1,000/ton in a week, leading to a surge in scrap prices.

Import Offers

The scrap import offers have fallen slightly by $10-15/ton in a week due to slow purchases from Turkey’s steel mills and the increase in local generation of scrap. The latest offers for shredded grade stand at around $445-450/ton CFR India.

While hardly any bulk deals were concluded for imported scrap as availability is sufficient in the local Indian market. Due to a decline in import offers, the major buyers have put their buying on hold and opted wait-and-watch approach.

Insight

It is anticipated that scrap prices will remain volatile in the coming days due to subdued demand in the domestic market. The prices in international markets are expected to remain under pressure due to the rising liquidity crunch on banking crises. Therefore, the prices in the Indian market may react accordingly.

Read more: Indian Semi-Finished Steel Market: Billet And Sponge Iron Trends

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