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Indian Imported Shredded Scrap Prices Soar to Four-Year High

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by - 1/10/2018 6961 Views

2018 turns out to be a strong and productive year for the domestic steel market in India already, while the prices of shredded and HMS grades of imported steel scraps continue to rise yet again.

Nagercoil, Jan 11, 2018 - In the working week starting January 1 through January 5, prices of Indian imported scraps elevate to four-year high, thanks to a dip in supply in various global scrap markets. Price of shredded scraps imported from the US rose from $340 per tonne CFR (recorded on December 18, 2017) to $380 per tonne CFR (as of January 6, 2017), a steep increase of 12%.

As the prices of imported shredded scraps go on to take an upward trend in India, the country’s domestic scrap market simultaneously witnesses a strong start this year. The Indian market is expected to remain strong in the coming days, owing to strong scrap demand, falling inventories and rise in iron ore prices.  A 20-22% hike in the prices of iron ore was proclaimed by state-miner National Mineral Development Corporation (NMDC)

Notably, a price hike of around Rs 2/kg was identified for South India Irons, with final prices being Rs.18.5.kg, South Indian Cast Iron Rs 22/kg, South Indian MS Turning Rs12.5 /kg, and South India MS Boring Rs 12.5/kg.

“The market is pretty good in India - it is a supplier’s market. Buyers think that if they don’t buy now, they won’t have enough [scrap] for their needs,” one seller said. “Everyone has low [scrap] supplies because Indian steel products have been selling easily recently,” said another. HMS 1 & 2 scraps imported from the UK also experiences similar price behaviour, with its cost currently sitting at $340. These scraps were priced at $330 as on December 16, 2017.

Experts suggest that the hike in the price of iron ores would instigate steel production costs to jump as much as Rs. 1100 – Rs. 1300 per tonne. Furthermore, they also suggested there’s a shortage in iron ore due to increased exports, even though it is not significant enough to cause a sudden price hike. Eventually, the Indian domestic steel markets experienced good results this week due to frequent buying activity. Forecast also predicts that the Indian steel capacity would reach 150 million tonnes by 2020.

Traders actively involved in the Indian import scrap market are positive that the scrap prices will be dependent on the rise in domestic steel demand, combined with a favourable regulatory environment.  “In the first quarter, there will be less [scrap about] and Northern Europe will still be in winter, so prices are likely to start the year strongly”, one Indian trader said. "I am very bullish about the first quarter of 2018 in India - we will be able to compete in the international markets,” expressed another Indian seller.

India isn’t perhaps the only country where imported scrap prices are on the rise. Import prices of scraps in Taiwan also gained steady momentum, striking a perfect balance between supply and demand. On the flip side, the Turkish market remains dormant through the holidays, but is likely to get back up in the month of February.


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Category : Metal

Tags : Indian Steel Market 2018, Shredded Scrap, Shredded Scrap Price, HMS 1&2 Scrap Forcast, Steel Scrap, Imported Shredded Scrap, Scrap Import in India, Steel Demand in India, International Ferrous Scrap Market, Import Scrap Price, Indian Metal Market

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I have been with recycleinme.com for the past four years and enjoy working as the Administrator of the Scrap Prices section.  I am graduated as Master of Business Administration in Human resource management. Why I have chosen this course is because I’m very much fond of Business Administrati .... more info


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