OfBusiness MS Scrap Dailies

24th June’23

Price

• Today, the MS Scrap market has opened steady with no significant changes prices.
• The prices for various 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. 34.50/kg, and Super at Rs. 35.00/kg ex-plant.

Demand and Supply

• The demand for MS Scrap remains stagnant due to weak demand for finished goods. Additionally, decisions such as increasing the Sponge Iron ratio in the Scrap-Sponge Iron mixture during the Billet process and maintaining lower buffer stock levels pose further challenges. On the supply side, logistics and quantity appear unaffected, given the lower demand.

News

• Mr. Vivek Agrawal, COO of GPIL, stressed the significance of utilizing high-quality raw materials to optimize induction furnace productivity and efficiency. For DRI, FeM 80% or higher specifications are essential. Premium DRI reduces energy consumption, lowers costs, enhances yield, and minimizes waste, like slag.
• Ahead of the Eid holidays, trading in the South Asian imported scrap market was slow. Buyers and suppliers were cautious due to market uncertainty and the holiday season. The decrease in domestic semi-finished steel prices in India prompted scrap suppliers to make adjustments. Import scrap buyers sought additional discounts due to reduced demand from end users.

OFB’s Opinion

• Our analysis suggests that the MS scrap market will likely stabilize at its current levels by the end of the third week of June. Lackluster demand and alternative proportions have impacted the market, resulting in limited import deals. In the final week of June, manufacturers may push for increased sales, potentially causing further price reductions in finished goods. However, barring any significant breakthroughs, we anticipate the market to remain within its current range.