Scarp prices increased substantially by US$15/MT, says report
The Indian steel market is expected to make a small correction having seen price increases for about seven weeks, according to industry group Wirana Shipping Corp.
“We may expect some downward price adjustments after having seen a continuous increase for about 7 weeks,” said the Wirana report while it is seeing sustained demand from the end users for finished steel products and semis.
The report pointed out that prices in the demand-drive market will still stabilize after a small downward adjustment.
Prices offered by ship recyclers have also improved at the end of week of 5 Sept. Steel plate prices increased marginally by US$1/MT whereas local scarp prices increased substantially by US$15/MT.
Imported scrap prices increased by US$10/MT and prices of semis and finished steel products in the local steel market increased to about US$2 – $7/MT. “But in some finished steel product, we also saw price reduction of US$5-$7/MT.”
Vessels from bulker and tanker segment were circulated which received active interests from the ship recyclers, according to Wirana. “There was an increased number of ship recyclers that were willing to pay higher prices, which shows the increased confidence of ship recyclers.”
The Indian Rupee has appreciated by a substantial 0.70% in a week (ended 5 Sept) when the exchange rate reached Rs.94.27 to US$1.
The appreciation has been due to a much bigger total foreign exchange inflow of US$136 billion from a special deposit program from Non-Resident Indians, noted the report.
“Increased reserves will give the country’s central bank, Reserve Bank of India, more ammunition to defend the Rupee, and this will keep away the short sellers and short currency trades. We would expect prices offered by ship recyclers to remain firm, given the stability gained by the Rupee.” Fiinews.com
