In recent conversations with market participants, SteelMint learned that offers for imported scrap have moved down in India by USD 5-10/MT on W-o-W basis following the slowdown in scrap buying in Turkey market and sharp plunge in the demand from Indian importers.
Domestic scrap prices in India have successively moved down since last 3-4 weeks which have made steel mills to prefer it over costlier imported scrap. Since last one months’ time domestic scrap prices have dropped by INR 2500-3000/MT (USD 36-44) over the impact of falling billet and rebar prices.
Price assessment of UK and USA origin containerized Shredded scrap stood at USD 377-382/MT, CFR as against USD 382-385/MT last week. Offers for HMS 1&2 (80:20) from Middle East stood at USD 350-355/MT and HMS 1 at USD 355-360/MT, CFR. South African HMS 1 assessed at USD 360-365/MT, CFR Nhava Sheva.
Offers for West African HMS scrap heard in the range of USD 330-335/MT, CFR depending on the quality of scrap in containers. While Europe and UK origin HMS suppliers stood less offering this week.
“Offers for Imported scrap have corrected this week despite which domestic scrap is still cheaper and easily available. On the other side, imports were costlier and not feasible due to unfavorable currency depreciation” shared a market participant.
The price gap between Shredded and HMS 1&2 has widened further to USD 25-27/MT this week on a disparity between supply and demand for low-grade scrap as compared with high grade.
Few steel mills are having sufficient scrap stocks available in hand and many of the importers are already booked for whole July month. 2-3 bulk scrap vessels are expected to arrive soon on Indian ports however, few bookings are expected in the next week at corrected prices.
USD/INR exchange rate stood at 68.88 today which was trading at similar levels hitting record low at 69 a week ago. Importers remain waiting for clarity in the global market and stability of Indian Rupee against USD.
Indian domestic scrap prices fell further on W-o-W – Amid decent availability and weakened steel prices in the local markets, domestic scrap prices in India have tumbled down by INR 400-500/MT for eastern and central regions while by INR 800-900/MT in the southern regions. Today HMS 1&2 (80:20) assessed at basic prices of INR 24,700-24,800/MT (down INR 300-400 W-o-W) in Mumbai, while INR 23,900-24,100/MT (down INR 900 W-o-W) in Chennai, GST @ 18% extra.
Ship breaking market witnessed weak sentiments amid sharp fall in local steel prices and massive currency devaluation in Alang region. Ship cutting prices 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, no sales reported in the market with volatility in fundamentals. Recyclers prefer to cut small vessels quickly instead of spending months on VLCC cutting.
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