Imported scrap offers to India remained mostly stable this week with marginal increase in HMS offers. Few thin trades were observed in the market before closure for New Year holidays.
Offers for Shredded scrap in containers from USA and UK assessed almost firm at USD 375-380/MT, CFR Nhava Sheva this week. However last deal for Shredded was concluded at around USD 365-370/MT level.
Price assessment for HMS 1&2 (80:20) in containers stood at USD 345-350/MT, CFR Nhava Sheva from Dubai while its availability is very low. As of now Dubai based scrap exporters are not quoting offers owing to lacking clarity on the 5% VAT in UAE which will be imposed from 1st Jan’18.
Offers assessed for HMS 1&2 from UK are at USD 335-340/MT, CFR. While HMS offered above USD 350/MT from Australia and South America this week. Offers for HMS 1 from South Africa heard at USD 360/MT, CFR and HMS from West Africa assessed at USD 330/MT, CFR Nhava Sheva. These offers have increased by USD 5-10/MT from offer levels in last week.
“Offers for containerized imported ferrous scrap remained firm in India. Thin trades were reported at beginning of the week from several buyers for HMS grade following stronger Indian local market. Though no deals for bulk cargo from Indian importers reported yet, this week, HMS was traded at USD 345/MT from Dubai, at USD 350/MT from Australia in containers while P&S from Europe procured at USD 365/MT, CFR Nhava Sheva.” – a source from leading scrap supplying company shared with SteelMint.
Strong local markets supported scrap importers to inquire for bulk cargoes however no bulk deals were reported.
“Indian buyers have started scrap imports after remaining less active since previous few weeks. Currently, offers are very few, as most of the suppliers are on holiday. Suppliers are likely to resume working only in starting of Jan’18 and buyers are likely to book cargoes then.” shared an East India based trader.
The price gap of USD 20-25/MT still persists between offers for Shredded and HMS (80:20) from past few weeks.
Few steelmakers are working with the domestic scrap as it is still cheaper over imported. Currently, HMS (80:20) in Mumbai is assessed at INR 23,000/MT and that in Chennai is around INR 23,400/MT (Basic prices, GST @ 18% extra).Domestic scrap prices have increased by INR 400-500/MT on W-o-W.
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