India: Imported scrap trades slow down further as offers rise by $30/t w-o-w

Combination of an uptrend in global prices, sluggish Indian market, and container shortages have ensured that steel scrap importers refrain from booking fresh orders, SteelMint learns. Domestic scrap and sponge iron continue to remain a preference over the imported scrap.

“There is no booking this week, in the coming week we may try but it all depends upon the availability”, shared a prominent imported scrap buyer.

SteelMint’s assessment for Shredded scrap in containers of UK/EU origin stands at $460/t CFR Nhava Sheva, moving up significantly by $30/t w-o-w.

“Markets are on fire due to Turkish buying and even global suppliers are now targeting $500 for HMS to Turkey. However, these high prices are not workable for South Asian countries. Trade is also getting adversely affected due to shortage of containers”, shared a global trader.

Scrap import resumption by China will surely be a market driving factor. Notably, China’s newly set scrap import standards have been announced, which will be implemented from Jan’ 21.

“Indian scrap buyers are keenly watching China’s scrap imports to resume which might take prices to another level” a prominent scrap trader shared with SteelMint.

Recent offer and deals-

• Around 1,000 t of Australian origin shredded was booked towards the beginning of this week at $440/t CFR basis.
• This week’s offers for UK/Eu origin Shredded are reported in the range of $470-475/t CFR basis. However, deals were not concluded at these levels.
• Whereas offers for HMS from Dubai stands at $420-425/t CFR level, buying has been limited at $405-410/t level and showing less interest at these levels.

Indian domestic scrap market overview – Melting scrap prices have observed mixed sentiments this week. SteelMint’s assessment for HMS in Western India stands at INR 28,700/t DAP Jalna, down by INR 500 w-o-w. Participants have lowered their offers due to heavy inventory.

The assessment for Chennai stands at INR 31,400/t DAP Chennai level. Supply shortages have led to an increase of INR 1,600 in Chennai on a weekly basis. It is expected that near term prices may remain range-bound without any major changes.

Sponge iron price remains stable, trades improve– Sponge iron (C-DRI) prices remained stable on weekly basis. SteelMint’s assessment for the same stands at INR 27,100/t exw Raipur, Central India.