India's High Melting Scrap market extended its late-June weakness, with weekly assessments indicating sustained downward momentum and reinforcing the broader monthly decline. Early in the month, the market remained relatively steady with consistent buying activity, but by mid-June, subdued mill procurement and thin spot trading weighed on sentiment, prompting sellers to trim offers. The weaker end-of-month trend reflected a market where ample domestic availability reduced the urgency for seaborne purchases, even as logistical headwinds highlighted potential constraints on imported cargoes. The steel and melt-shop sector remained the primary demand driver, with High Melting Scrap serving mainly as a key melt-shop and steelmaking feedstock. However, procurement from steel mills softened throughout the month, while domestic recyclers increased supply, meeting most of India's High Melting Scrap requirements and leaving imports to cover the remaining demand. This rebalancing between domestic and imported material kept the CFR market subdued despite stable downstream steel production. Looking ahead, the near-term outlook remains bearish, driven by abundant domestic supply and cautious buying. However, potential import disruptions and continued logistical challenges could limit further declines, while any improvement in steel mill procurement may provide support, subject to prevailing market conditions.
