India: Scrap Import Offers Surge Slightly; Buyers Prefer Domestic Scrap

Imported scrap offers to India climbed slightly further for HMS 1&2 (80:20) and remained firm for Shredded scrap on W-o-W basis, Less buying interest witnessed in the market as offers are still at high levels than expected working range.

Following strong prices in global imported scrap market, Indian imported scrap offers have surged up further. As per recent conversations with market participants SteelMint learned that, this week most of the buyers were preferring domestic scrap or shifting to DRI/Sponge for steelmaking which were in quite workable range. Buying interest remained still at lower levels and unavailability of scrap from suppliers end still continued.

Offers for Shredded scrap in containers assessed at USD 355-360/MT, CFR Nhava Sheva for UK and Europe origins. These offers remained mostly firm along with few offers heard slightly up by USD 3-5/MT on W-o-W basis. Offers for Shredded scrap were at USD 355/MT, CFR Nhava Sheva from UK last week.

Price assessment for HMS 1&2 (80:20) in containers for Dubai origin is now at USD 330/MT, CFR Nhava Sheva. These offers increased by USD 5-10/MT from USD 325/MT levels in last week. Few offers for HMS 1 also heard at USD 335-340/MT, CFR Nhava Sheva.

“Presently ferrous scrap importers turned silent in India. Not much buying heard as the prices were too high. Sellers from major exporting countries like Europe and South Africa are closing down trade activities owing to winters and may remain non-working for few more weeks to pass”– a market participant shared with SteelMint.

“Imported scrap offers are too high and thus non-workable. Offers from Europe & US are too high to be accepted. Only offers from Dubai & African countries are workable at the moment. Thus Indian steelmakers are either shifting to DRI/Sponge or preferring domestic scrap presently.” – shared a Source with SteelMint.

Domestic scrap prices inched up by INR 300-500/MT against reported last week amid tightened supply. Currently, HMS (80:20) in Mumbai is assessed at INR 22,600/MT and that in Chennai is around INR 22,800/MT (Basic prices, GST @ 18% extra)