Melting Scrap Prices Remain Volatile In India

Scrap prices in major scrap-consuming regions of India have remained volatile. The fluctuation in steel prices and hefty imports of melting scrap have resulted in volatility in scrap prices as per spot demand. Melting scrap prices are generally affected by the price movement of sponge iron, billets, rebar, and imported offers.

In the last two weeks, scrap prices in major scrap-consuming regions fluctuated by Rs. 1,000/ ton. 

Reference Prices

Current offers of HMS (80:20) grade stood at around Rs 37,000/ ton in southern India, while in western India, the prices are hovering at Rs 37,000-38,000/ ton on an ex-works basis (excluding taxes). Coming to northern India, in Punjab, the prices stand at nearly Rs 40,500-41,000/ ton ex-works (excluding taxes). For HMS grade, on containerized bookings, imported scrap offers to India were around USD 435-440/ ton CFR India.

Way Ahead

Market experts expect no major change in melting scrap prices, considering fluctuating secondary steel prices, higher offers of substitute products (sponge iron and pig iron) in India, as well as strong offers of scrap in the global market.
It is worth noting that a Turkey-based mill booked scrap at a higher price by USD 5-10/ ton as against the deal a day ago.

India’s ferrous scrap imports were recorded at around 0.5 million tons in November 2022 and December 2022 each, while in January 2023 it is estimated to come down to around 150,000-200,000 tons. It is because the major orders have been dispatched to the producers based south, west, and northern regions already.

Overall scrap imports in India were recorded at around 8 million tons in 2022, which was nearly two-fold as against close to 4 million tons in 2021.

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