OfBusiness MS Scrap Dailies

9th June’23

Price

• Stabilization has been observed in the prices of MS Scrap in Chennai after a sharp fall of Rs 500-1,000/ton yesterday. The current prices reflect the demand for Finished Goods (FG) in the market.
• The ex-plant prices for different categories of MS Scrap in Chennai are as follows: Godown at Rs. 33.00/kg, Bazaar at Rs. 31.50/kg, Commercial at Rs. 30.50/kg, Boring at Rs. 32.00/kg, Godown heavy at Rs. 34.00/kg, and Super at Rs. 34.50/kg.

Demand and Supply

• Due to subdued demand for FG, manufacturers are maintaining lower stock levels of both FG and MS Scrap, resulting in cash flow constraints. However, the supply of MS Scrap has remained stable in the local market, which has mitigated the impact on Scrap prices.

News

• The imported Scrap market witnessed limited activity, with no significant deals taking place. Turkey’s imported Scrap market is cautious as the country’s currency continues to depreciate.
• In South Asia, trade remained subdued, and Indian Scrap buyers are adopting a wait-and-watch approach due to unstable prices. The domestic market’s demand has yet to show improvement. Steel producers are closely monitoring global price movements following recent Turkish deals, although no substantial deals were reported.

OFB’s Opinion

• The MS Scrap market opened with stability today. While there was a slight increase in FG sentiment yesterday, sustained and consistent trends are necessary to drive MS Scrap prices. Market participants may continue to monitor the situation, resulting in an expected flat market for the time being.