Indian Scrap Market Observes Volatility On Varying Steel Market

The Indian Ferrous Scrap industry is witnessing volatility due to the fluctuating Steel market. The Scrap industry has found support in the changing Steel market.

After a price correction in the first 10 days of April, the prices have registered slight changes in the domestic market. The fluctuating Scrap prices in the global market have also resulted in a marginal change in the Indian Scrap market.

Price Movements In the Scrap Industry

The prices of Steel Melting Scrap have seen slight changes in the western and southern regions, ranging from Rs 100-300/ton. In central and eastern regions, the prices have remained more or less stable. However, in the north region, prices have increased by Rs 500-800/ton, week-on-week. As a result of these changes, the prices of HMS (80:20) grade have stood at around Rs 42,000-42,500/ton in Mandi Gobindgarh, Rs 40,000-40,500/ton ex-Raipur, Rs 40,500-41,000/ton in Durgapur, Rs 39,700/t ex-works, Alang, Rs 38,500-39,000/ton in Jalna, and Rs 36,500-37,000/ton ex-Chennai.

Impact Of Steel Market

The Indian Scrap industry is heavily dependent on the price movements of mid-sized Steel mills and the offers for imported Scrap. Since the Steel prices of mid-sized Steel mills are volatile (prices rose recently after a downtrend in the initial days of the past week), the Scrap industry has also seen marginal changes in prices. Similarly, the same price fluctuation is seen in the imported Scrap offers during a week’s duration, resulting in volatility in Scrap prices in the Indian domestic market, trade sources reported to Ofbusiness.

Availability Of Scrap

In terms of the availability of Scrap, the suppliers in the domestic market have reported sufficient availability as previous import orders are landing in India. During the months of February and March 2023, nearly 8.5 to 9 lakh tons of Scrap were imported each month, and about 15 lakh tons were imported in January 2023. Hence, with higher imports, the supply is balanced in the Indian market.

Import Offers

The import offers for Scrap have slightly fluctuated by $5/ton in a week, with the latest offers for shredded grade standing at around $460-465/ton CFR India. The bookings for imported Scrap have lessened in recent weeks amidst buyers’ expectations of a downtrend and bid-offer disparities.

Future Prospects

The global market’s volatility in Steel and Scrap prices is expected to lead to minimal changes in Scrap prices in India, according to sources. As per the market’s spot demand, the Indian domestic market is likely to follow suit.

OFB’s Insight

The Indian Scrap market is observing volatility due to the fluctuating Steel market. Price movements in the Scrap industry are slightly changing in some regions of the country. The mid-sized mills’ Steel prices and imported Scrap offers are impacting the Indian Scrap market.

The suppliers are reporting sufficient availability of Scrap due to higher imports. The import offers for Scrap have slightly fluctuated, and the bookings for imported Scrap have lessened in recent weeks. Despite the volatility, sources anticipate fewer changes in Scrap prices in the future.

Read more: How Was The Performance Of Steel Market In India During Week 15 Of 2023?

For real time commodity prices, latest news, and insights, please download the all NEW and all FREE OfBusiness APP