Indian Scrap Industry Boosts As Steel Prices Surge: Market Outlook And Price Movements Revealed

The Indian Scrap industry has found support as Steel prices have surged, along with a slight recovery in import offers and a significant factor of stuck imported material at various Indian ports. In this article, let’s examine the recent price movements in the Indian Scrap market, import trade dynamics, and the market outlook for Scrap prices. Here we go:

Steel Scrap Price Movement

Steel Scrap prices have surged by Rs 1,500-2,000/ton in a week, similar to a surge recorded in Semis (Billet) and Finished Goods Steel products.

• MS Scrap prices (HMS 80:20) grade now stand at around
  • Rs 40,500-41,000/ton- ex-works, Mandi Gobindgarh
  • Rs 39,000-39,500/ton- ex-Raipur
  • Rs 40,500-41,000/ton- Durgapur
  • Rs 39,500/ton- ex-works, Alang
  • Rs 38,500-39,000/ton- Jalna
  • Rs 35,500-36,000/ton- ex-Chennai

Import Trade Dynamics

The South Asian Scrap market has reported a slight improvement in trades in small parcels, however, bulk deals remained missing in the key markets of India, Bangladesh, and Pakistan. With fresh deals prices inched up by $5-10/ton after a decrease of $30-40/ton in South Asia since the first week of April 2023, OfBusiness observed.

• India- Indian imported Ferrous Scrap market observed no significant deals and offered for Shredded grade reported at around $430-435/ton CFR India, up by $5/ton, week-on-week.

• Pakistan- The market has inched up with recent deals and a price surge of around $5-10/ton to around $440-445/ton, CFR, for Shredded grade Scrap. However, the constrained currency issue Letter of Credit (LC) remained a key concern for significant deals and price improvement.

• Bangladesh- Like Pakistan, the ongoing concern for opening LCs remains a major factor for imported Ferrous Scrap deals to Bangladesh, and no significant bulk deals have been reported in recent.

Market Outlook

Although Scrap prices are still more or less in the same range compared to the previous month, the EU’s thought process towards greener Steel production through consuming Scrap and Scrutiny of Dubai’s consignments at Indian ports might further trigger price inflation in import deals. However, the domestic Scrap prices will largely depend on Steel prices and demand.

OFB’s Insight

Steel prices have surged, aiding the Indian Scrap industry, which has seen an increase in prices along with some recovery in import offers and stuck imported material at various Indian ports. Steel Scrap prices have surged by Rs 1,500-2,000/ton, like the surge recorded in Semis and Finished Goods Steel products. However, the South Asian Scrap market has reported low to moderate trades, and no major bulk deals were reported.

Read more: Week 19 Of 2023: Indian Steel Market Experienced Major Price Fluctuations- Find Out Which Products Were Most Affected

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