Construction revival after monsoons expected in the Indian sub-continent
There has been a definite strengthening in the market seen this week (ended 2 Sept) while local steel plate prices have increased by US$12/MT and imported scrap prices have also increased by US$11/MT, says Wirana Shipping in its weekly report.
Over all expected construction revival after monsoons in the Indian sub-continent, steel prices are expected to be firm.
Supply of fresh tonnages for recycling is also expected to improve in the coming weeks, but so will the appetite of ship recyclers increase.
“Thus, the demand and supply situation for recycling tonnage would expectedly balance out in September. We could, however, see firming up of prices for recycling tonnages,” said the report.
Local secondary mills continue the restocking as was seen in the previous week as well. This is due to strong price improvement seen in the wire rods the prices which saw further price improvement by US$22/MT this week.
Recent price and demand increase to some extent is also being fuelled because of market talk of a possible short term supply shortage situation in construction steel grade.
Local billet prices have further increased this week by US$30/MT in local market.
“Prices offered by ship recyclers have improved about US$15-20/ LT LDT this week and at the same time we have seen active participation by ship recyclers for tonnages at this improved price levels,” said Wirana.
Apart from surging food prices due to weaker monsoon this year, core inflation is moderate, and government has curbed rice exports to control food prices.
RBI is expected to keep interest rates at present levels.
“Given the current market parameters, we would expect prices offered by ship recyclers to improve and we could see more ship recyclers submitting offers for the fresh tonnages being offered,” said Wirana. Fiinews.com
