Imported scrap offers have corrected sharply to India however, very limited trades are happening in the market. Domestic scrap being cheaper remained a preference over imported.
In recent conversations with market participants, SteelMint learned that Indian importers have remained absolutely silent for scrap imports again this week. Sharp fall in domestic semi-finish and finish steel prices, considerable scrap inventories in hand and cheaper availability of domestic scrap kept importers away from booking imported scrap.
Indian scrap importers have turned hopeful for sharp fall in offers following recent fall in global scrap prices. However, huge disparity between buyers’ price expectations and sellers’ offers compelled everyone to keep waiting and watching for more clarity on price levels in upcoming weeks.
Price assessment of UK and USA origin containerized Shredded scrap fell down at USD 375-377/MT, CFR levels. However, hardly any deal heard in the market at these levels this week and limited buying interest remains at around USD 365-370/MT, CFR. While Shredded offers in bulk vessels heard above USD 380/MT levels.
HMS 1&2 offers have moved down by USD 5-10/MT successively for second week on W-o-W basis. Offers for HMS 1&2 (80:20) from UAE heard at USD 340-345/MT and HMS 1 assessed at USD 345-350/MT, CFR. Not many offers for South African HMS 1 were available in the market for which last deal was concluded at around USD 372-375/MT, CFR Nhava Sheva.
West African HMS is being offered at USD 320-325/MT and European HMS assessment stands in the range of USD 330-335/MT, CFR depending on the quality of scrap in containers.
The price gap between Shredded and HMS 1&2 increased further this week on a disparity between supply and demand for low-grade scrap as compared with high grade.
“Market remains dull for scrap imports and it is hardly expected that Indian importers would start buying at least for next 2-3 weeks until global markets correct further. Few buyers are expecting for unrealistic levels which are less by USD 10-15/MT than current offer levels which is hardly to happen in the coming days” shared a trade source.
Few participants indicated that importers may resume bookings actively only in the second half of August.
Indian domestic scrap prices continue downtrend again this week – Amid decent availability and sharply dropped semi-finish steel prices, domestic scrap prices in India continued downward trends in almost all major regions on the weekly comparison. Currently, HMS (80:20) basic prices assessed at INR 24,300-24,500/MT (down INR 400 W-o-W) in Mumbai, while INR 23,400-23,700/MT (down INR 600 W-o-W) in Chennai, GST @ 18% extra.
Ship breaking market witnessed declining sentiments as steel plates prices have moved down by INR 700-1000/MT W-o-W in Alang region. Ship cutting prices moved down by USD 5-10/MT W-o-W basis and assessed at USD 415/LDT for general dry bulk cargo; at USD 445/LDT for containers and at USD 435/LDT for tankers on CNF India basis respectively. As per reports, two LPG type vessels of 8,123 LDT and 8,084 LDT fetched prices at around USD 410/LDT, CNF India last week.
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