Indian Scrap Market Remains Volatile On Price Recovery In Steel: Will Prices Continue To Remain Uncertain?

The Indian Scrap market has remained volatile due to fluctuating Steel prices and declining import offers. The MS (Mild Steel) Scrap market saw significant price drops during the last week, but improvement was recorded in a few major Scrap-consuming markets in the west and northern regions in the current week. However, declining prices of imported materials continue to weigh on the domestic market, resulting in hand-to-mouth trades, sources reported to Ofbusiness.

Price Movement

• Mild Steel Scrap- The Mild Steel Scrap prices have dropped in a few locations by Rs 500/ton on a week-on-week comparison. However, it rebounded by Rs 500-1,000/ton in the last three two days.

• As a result of these changes, the Scrap prices of HMS (80:20) grade have stood at around Rs 40,000-40,500/ton ex-works, Mandi Gobindgarh, Rs 38,000-38,500/ton ex-Raipur, Rs 39,500-40,000/ton in Durgapur, Rs 38,500/t ex-works, Alang, Rs 37,500-38,000/ton in Jalna, and Rs 35,500-36,000/ton ex-Chennai.

Asian Market Trade

The South Asian Scrap market reported low to moderate trades as no major deals were reported in the key markets of India, Bangladesh, and Pakistan. It is important to note that first week of April 2023 onwards, prices of Shredded Scrap decreased by $30-40/ton in South Asia. Let’s take a look at the trades in some of these markets:

• India- No major deals were reported in the Indian imported ferrous Scrap market because of subdued demand. There were offers for Shredded grade Scrap at around $425-430/ton CFR India, down by $5-10/ton, week-on-week.

• Pakistan- European Shredded Scrap was offered at $430-435/ton CFR Port Qasim. But buyers had little interest due to constrained currency flows in the market on letter of credit (LC) issues.

• Bangladesh- The imported ferrous Scrap market continued to be slow due to sluggish sentiments in the domestic market, and participants remained mute.

• Turkey- Turkey’s market saw sharp price reductions, and recent deals were heard at around $369-374/ton on a CFR basis. In one month, prices have dropped more than $50/ton due to lesser demand.

OFB’s Insight

The Indian Mild Steel Scrap market has remained volatile due to fluctuating Steel prices and declining import offers. Although there has been a slight improvement in a few major Scrap-consuming markets in the western and northern regions, the declining prices of imported material continue to weigh on the domestic market, resulting in hand-to-mouth trades.

The South Asian Ferrous Scrap market has also been silent, with no significant deals in the key markets of India, Bangladesh, and Pakistan. The Turkey market saw sharp price reductions due to lesser demand.

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