Local Indian scrap prices edge lower due to slack demand

Wednesday, 04 December 2019 15:49:45 (GMT+3)   |   Kolkata

Local Indian scrap prices have continued to seek lower levels during the past week in reaction to the negative outlook for rebar prices, while import trades have remained limited with offer prices remaining stable, SteelOrbis has learned.

Market sources said that local scrap prices are down INR 400/mt ($6/mt) week on week to INR 22,400/mt ($312/mt) ex-stockyard at Mandi Govindgarh in northern India. Scrap prices have declined by INR 200/mt ($3/mt) to INR 21,800/mt ($304/mt) ex-stockyard at Alang in western India. Secondary steel mills were staying away from booking fresh scrap volumes from either local stockyards or imports and these lower bookings coupled with high availability of scrap at stockyards across the country put fresh pressure on prices.

Imported scrap offers after a slight weakening late last month have remained stable. Ex-UAE scrap offers are at $250-255/mt CFR Nhava Seva port in western India.

“Buyers who are not booking now will miss the bus in terms of better price offers,” a member of the Metal Recycling Association of India (MRAI) said.

“But nonetheless Indian secondary steel mills have no appetite to make fresh bookings either in local stockyards or imports considering uncertainties over rebar prices which continue to remain under pressure from the failed demand uptick,” he added.

$1 = INR 71.70

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