Indian imported scrap market observed thin trades in containers at high prices this week, however, market remained little slow in buying compared to Bangladesh and Pakistan.
As per recent conversations with market participants SteelMint learned that, Indian imported scrap prices rose further in recent trades reported for containerized scrap this week. Continuously rising global scrap prices pushed Asian scrap prices upward in both containers and bulk.
According to sources, Shredded scrap in containers traded from UK and USA origin in the range of USD 400-405/MT, CFR Nhava Sheva. Current bulk offers for Shredded or composite scrap cargoes are hovering in the range of USD 415-420/MT mostly for April shipments.
However, USA based suppliers remained holding the offers and targeting for further hike of USD 15-20/MT for Shredded scrap. Tightened supply amid strong global scrap demand may result in the further rise in scrap prices in the near terms.
Offers for HMS 1&2 (80:20) in containers assessed stable at around USD 380/MT, CFR from Dubai, while it is heard at USD 365-370/MT, CFR from West Africa and at USD 375/MT, CFR from UK respectively.
HMS 1 assessment from Dubai remained at USD 385/MT, CFR Nhava Sheva. Few offers for South African Shredded heard at USD 400/MT, CFR. Thus, offers have increased this week by USD 5-8/MT on W-o-W basis to India.
“Scrap markets are quite strong presently in Bangladesh and Pakistan. At this moment suppliers are getting better prices in those markets compared to India. Indian scrap importers are in ‘wait and watch’ mode, however, prices likely to remain strong on high global scrap and billet prices. Domestic scrap is being preferred by few of them over imported” – shared a source
Domestic scrap prices keep hovering this week because of demand-supply dynamics. On W-o-W basis prices climbed INR 400-500/MT in Chennai and INR 100-200/MT in Mumbai. Currently, HMS (80:20) prices in Mumbai and Chennai are assessed in the range of INR 25,500-26,000/MT (USD 391-399) (Basic prices, GST @ 18% extra).
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