Tight Domestic Supply and Stronger Steel Prices Support High Melting Scrap Recovery

The Indian High Melting Scrap market staged a notable recovery in late August ****, reversing the softer tone that had prevailed through July. The rally was underpinned by limited vessel arrivals restricting fresh scrap availability, keeping replacement costs elevated and sellers firm on offers. Domestic mills remained active in need-based procurement, while stronger semi-finished and finished steel prices improved replacement economics for High Melting Scrap.

Easing rainfall in Gujarat during mid-August boosted construction activity and healthy steel bookings, allowing mills to gradually reduce discounts and strengthen their ability to absorb higher raw-material costs. In Mandi Gobindgarh, HMS **:** prices increased, supported by tight domestic availability despite moderate finished steel demand. Stringent GST document checks at entry points slowed inter-state scrap inflows, further tightening physical High Melting Scrap supply. Meanwhile, sponge iron remained an important alternative in the charge mix, with mills sourcing material from Durgapur, Ramgarh and Odisha. Imported...