In recent conversations with market participants, SteelMint learned that Indian scrap importers remain less working again this week. However, import activities are likely to increase in coming weeks. Price assessment stood almost stable and very limited trades are being reported in the market. Most of the steelmakers remain preferring cheaper and easily available domestic scrap and sponge iron.
Price assessment of UK and USA origin containerized Shredded remain at USD 380-385/MT, CFR Nhava Sheva. South African HMS 1&2 assessed at around USD 370/MT and Dubai HMS 1 at USD 370-375/MT, CFR Nhava Sheva. Minor trades for West African and European HMS heard to have concluded in the range of USD 345-355/MT, CFR depending on the quality of scrap in containers.
“Importers are not much active at the moment in India however towards the closing of Ramadan the market is likely to recover with a flurry of bookings for imported scrap. Inventories available for working in end June and July are very low because not many trades have been concluded in containers almost for last three-four weeks’ in India.” shared a source.
Suppliers remain hesitant to offer much over expectations of the further increase in global scrap prices. While fluctuating currencies like Euro and Pound against USD kept impacting trades considerably this week.
Turkey imported scrap prices firm in recent deals – Global imported scrap prices remain strong as importers kept booking more July shipment cargoes in the recent trades concluded in Turkey. According to SteelMint’s assessment, recent deals concluded pushed the price assessment for USA origin HMS 1&2 (80:20) scrap up at around USD 343-345/MT, CFR Turkey up USD 2-3/MT against the last report two days ago. According to participants, amid less inventories and supportive weather conditions, Turkey-based importers are likely to remain active pushing prices further upward.
Indian domestic scrap prices tumble sharply on W-o-W – Amid decent availability and falling billet prices, domestic scrap prices in India observed downtrend in almost all major regions on the weekly comparison. Currently, HMS (80:20) prices in Mumbai assessed at INR 26,500-26,700/MT (down INR 900 W-o-W), in Chennai INR 26,300-26,500/MT (down INR 100 W-o-W) these are basic prices, GST @ 18% extra.
Ship breaking market witnessed firmer sentiments amid sales being concluded in Alang region. Ship cutting prices remain stable on W-o-W basis and assessed at USD 430/LDT for general dry bulk cargo; at USD 450/LDT for containers and at USD 440/LDT for tankers on CNF India basis respectively. As per reports, two Reefer type vessels sold each of 6,095 LDT and 6,269 LDT at a reported price range of USD 425-427/LDT last week, CNF India.
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