OfBusiness MS Scrap Dailies | 7th July 2023

Price

• Today, the market opened with stable prices for all categories of MS Scrap.
• Prices in Chennai on an ex-plant basis are as follows:
  • Godown: Rs. 31.50/kg
  • Bazaar: Rs. 30.50/kg
  • Commercial: Rs. 29.50/kg
  • Boring: Rs. 30.50/kg
  • Godown Heavy: Rs. 33.00/kg
  • Super: Rs. 33.50/kg

Demand and Supply

• As the monsoon season approaches, the demand for MS Scrap is expected to decline further. Negative market sentiments and the upcoming monsoon have put additional pressure on demand.
• Manufacturers are currently operating at a good scale, ensuring a sufficient supply of MS Scrap. However, fluctuations in finished goods prices have impacted the prices of MS Scrap.

News

• The imported Scrap markets in South Asian countries, particularly India and Bangladesh, have experienced a downturn due to reduced transactions and sluggish demand caused by the monsoon season.
• Both imported and domestic Scrap prices in India have declined, while the imported Scrap market in Pakistan remains subdued.

OFB’s Opinion

• The MS Scrap market faces challenges as prices of Billets have decreased, leading to a decline in Scrap prices. Market participants are concerned about further price falls, which may increase selling pressure and affect margins.
• Breaching support levels could exert further downward pressure on the market.