SteelMint learned from industry participants that imported scrap offers to India climbed up following an uptrend in the global markets, however, imports remained mostly non-viable for the time being amid poor domestic fundamentals and far competitive prices of domestic scrap and sponge iron. Industry participants await for Budget being presented on 5th July seeking cut in import duty on steel scrap imports which is presently at 2.5%.
SteelMint’s assessment for containerized Shredded from UK and Europe stands at USD 318-323/MT, CFR Nhava Sheva, up USD 5-7/MT against last week. No major deal for Shredded scrap reported in the market. However, few buyers with limited scrap inventories continued enquiries despite buying interest at quite a lower side than the current offers.
Dubai based scrap suppliers continued to keep offers high amid improved domestic scrap demand, however, the mismatch in expectations from Indian buyers have resulted in very limited trades of HMS scrap to India this week. SteelMint’s assessment remained unchanged around USD 315-320/MT, CFR for HMS scrap depending on origin.
Few minor deals for low-grade scrap reported with European origin Turning sold at USD 280/MT, CFR Nhava Sheva and West African HMS at around USD 295/MT, CFR.
Indian domestic scrap prices continue to remain under pressure – According to prices maintained with SteelMint, domestic scrap prices have been lowered by a total INR 2300-2500/MT (USD 33-36) in last 1 month, with the current assessment of local HMS 1&2 (80:20) stands at INR 22,400-22,600/MT (USD 326-329), CFR Mumbai, marginally down against last week. Domestic scrap prices thus remained far competitive over the imported scrap keeping most of the steelmakers preferring domestic scrap amid ample supply.
Indian currency remained majorly stable against USD as the USD/INR exchange rate stood at around 68.5-68.8 levels, against 69 levels a week ago witnessing slow but steady appreciation since the past couple of weeks.
Enquiries for imported scrap rise in Pakistan & Bangladesh – Following strengthening global scrap prices in Turkey, imported scrap prices in other South Asian markets, Pakistan and Bangladesh observed upward movement in recent deals. SteelMint’s assessment for Shredded scrap from US & UK stands at USD 323-325/MT, CFR Qasim and USD 335-337/MT, CFR Bangladesh. Amid continual deep sea cargo bookings by Turkish steel mills, assessment of US origin bulk HMS 1&2 (80:20) has reached USD 300/MT, CFR Turkey levels.
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