India: Imported Scrap Prices Up; Buying Slows Down

Indian imported scrap market observed thin trades in containers at high prices again this week, however, buying has slowed down over less trade activities on account of upcoming holidays for local Holi festival.

As per recent conversations with market participants SteelMint learned that, Indian imported scrap prices rise further in recent thin trades reported for containerized scrap this week. After booking around 4-5 bulk scrap vessels for March shipments in last one months’ time, Indian steelmakers have slightly slowed down the scrap imports.

According to sources, Shredded scrap in containers traded at USD 395/MT, CFR India west coast from UK based supplier recently. However, offers are very limited as most of the supplying yards are waiting and holding the offers over the expectations of further increase in prices after the second week of March.

The price assessment for Shredded scrap in containers from UK/USA increased to USD 395/MT, CFR Nhava Sheva this week. Offers for HMS 1&2 (80:20) in containers assessed at around USD 375-380/MT, CFR from Dubai, while it is heard at USD 365/MT, CFR from UK.

HMS 1 assessed from Dubai at USD 385/MT, CFR and from South Africa at around USD 375-380/MT, CFR Nhava Sheva. These offers have increased this week by USD 5-10/MT on W-o-W basis to India.

“Suppliers are not offering actively to Indian markets at this moment as they are getting better prices in markets like Bangladesh and Pakistan. Most of the Europe based yards are waiting for a settling of domestic prices and likely to increase the offers again in coming weeks. Scrap booking slightly slowed down because of upcoming Holi festival holidays and which is likely to recover only from the next week. However, overall markets should remain strong for the months of March and April” – shared a source

Domestic scrap prices increased further by INR 300-400/MT on W-o-W basis amid tightened supply in India. Currently, HMS (80:20) prices in Mumbai and Chennai are assessed in the range of INR 25,300-25,800/MT (USD 388-395) (Basic prices, GST @ 18% extra).