Scrap prices increase in India, mills rush to re-stock ahead of festival holidays

Wednesday, 23 October 2019 14:18:44 (GMT+3)   |   Kolkata

Indian local and import scrap prices increased during the past week in reaction to recovery in global scrap prices and trading activity bounced back even at higher levels as secondary steel mills were seen to be restocking ahead of  festival later this week, SteelOrbis was informed.

According to market sources, ex-UAE offers for shredded scrap to India surged around $10/mt to $250-255/mt CFR Nhava Seva port in western India. However, deals for European scrap were concluded at $261-262/mt CFR. Last week the prices level was at $255/mt CFR. This week offers have been heard up to $265/mt CFR for ex-Eu and ex-US shredded scrap.

Local scrap prices gained INR 700/mt ($10/mt) during the past week to INR 22,200/mt ($313/mt) ex-stockyard at Mandi Govindgarh in northern India. Scrap prices was up INR 500/mt ($7/mt) to INR 21,500/mt ($303/mt) ex-stockyard at Alang in the west.

Traders said that there was significant increase in import activity during the past week as secondary steel mills were re-stocking ahead of Diwali festival later this week and demand for both local and imported scrap would sustain the trend after the Diwali holidays end next week.

“We hear from reports received here that US scrap prices might have bottomed out and several steel companies there are forecasting scrap price gains of $20-40/mt before current year end which triggered some revival in global scrap markets,” a member of Metal Recycling Association of India (MRAI) said.

$1 = INR 70.90

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