SteelMint learned from market participants that imported scrap demand from Indian steel mills is likely to increase in the coming month as mills are running on low stock and are likely to resume bookings shortly.
”Scrap buyers in India are optimistic about future but have kept away from taking positions on expectations of further price hike expected in coming weeks. Overall sentiments are much better and buyers should resume bookings in a big way as stock in mills is pretty low”, commented a scrap trader in Mumbai.
Imported scrap offers to India have moved up this week by around USD 5. Offers for Dubai HMS 1&2 is seen around USD 310/MT, CFR Nhava Sheva.
Current offers for HMS from Australia is heard around USD 320/MT, CFR and that from west Africa is around USD 300/MT, CFR.
Shredded scrap offers from USA/UK are presently heard around USD 340/MT, CFR Nhava Sheva which were around USD 330-335/MT, CFR last week.
Offers for P&S are assessed at around USD 340/MT, CFR.
On the other hand, domestic scrap prices in India have increased on limited availability. HMS (80:20) price assessment stands at INR 21,100-21,300/MT (ex-Mumbai), INR 21,400-21,500/MT (ex-Jalna) and INR 20,800-21,000/MT (ex-Chennai).
Indian sponge manufacturers in western parts of the country (Gujarat) have also started booking import vessels of iron ore lump from South Africa very aggressively owing to reduced supplies of iron ore & pellets from NMDC (C.G.) and Jindal SAW respectively.
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