Imported scrap trades could pick up by next week as the holiday week kept the buyers away from the market. Buyers have remained quiet for last three weeks, SteelMint understands. Offers from yards for containerised Shredded stands at $500-510/t, CFR Nhava Sheva levels.
However, few traders have significantly lowered the scrap offers towards 2nd half of this week and were trying to push sales in the market in the anticipation that things may get worse in the coming days. Offers for containerised Shredded scrap through high-seas is being heard from traders at $490/t, CFR.
“Customers are quiet, they are not in the market at all. Traders cannot assess what is a realistic price level. They were offering $485-495/t, but there have been no deals even at this level. Market is now in a wait-and-watch mode. Sentiments are negative and is turning bearish” shared a prominent trader.
SteelMint’s assessment for Shredded scrap in containers of UK/EU origin stands at $492/t CFR Nhava Sheva, registering a hike of $9 w-o-w.
Western India based steel mill has booked a small quantity of Dubai origin HMS 1&2 (80:20) in high seas at $401/t CFR basis.
India’s domestic scrap prices correct downwards– Melting scrap prices witnessed a further correction following the southward trend in semi-finished and finished steel prices. SteelMint’s assessment for HMS in Western India stands at INR 28,400/t DAP Jalna, down by INR 700/t w-o-w and for that Chennai stands at INR 31,800/t DAP Chennai level, drop by INR 700/t w-o-w.
Pakistan’s imported scrap prices fall in recent high sea sales-After a flurry of confirmed deals that were concluded earlier this week, imported scrap prices in Pakistan have dropped by around $30 in the new round of trades. Trade sources indicated that few deals for containerised Shredded scrap were concluded at $475-480/t CFR Port Qasim. Participants highlighted that with sentiments turning bearish, buyers have kept away from booking material anticipating further decline in the coming week. Few deals have been rumoured to have been concluded at $465/t levels, however this was not confirmed at the time of publishing the report.
Outlook– Imported scrap market is expected to get a clear direction next week. Hence buyers are likely to return to the market next week.
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