In the current volatile market situation, imported scrap trades to India have continued to remain slow for yet another week. Market participants are now in wait- and- watch mood.
Turkey’s imported scrap prices have dropped significantly by $40 w-o-w to $438/t CFR level in a week. It was recorded around $478/t CFR a week ago. However, limited trades were reported at current price levels.
On the other side, traders having material in the high seas were trying to push out sales at slightly lower prices. Other market participants are of the view that after budget, prices may find some clarity.
SteelMint’s assessment for containerised shredded stands at $437/t CFR Nhava Sheva level, down by $50-60/t w-o-w.
“No buying-no selling situation currently and very limited firm offers for shredded were heard. Market is standstill now and a wait and watch situation prevails. Only arrival cargo is being sold here, fresh booking is stopped. All are waiting for the next week for a price clarity” a trader has highlighted to SteelMint.
Domestic scrap prices in India witness sharp fall – Melting scrap prices fell by around INR 2,000-2,500/t ($27-34) w-o-w due to a sharp drop in domestic semi-finished and finished steel prices in the secondary market. SteelMint’s assessment for HMS in Western India stands at INR 26,000/t DAP Mumbai, and for Jalna stands at INR 26,100/t DAP Jalna level.
Billet prices in Mumbai have plunged by INR 4,000/t w-o-w and stands currently at INR 36,300/t DAP Mumbai.
Pakistan’s imported scrap offers drop by $30– Imported scrap prices to Pakistan dipped further by over $30 in a recently concluded deal. Around 2,000 t of UK/EU origin shredded has been booked recently at $425-430/t CFR Qasim basis, which was recorded around $460/t level earlier in the week.
Outlook– Imported scrap buyers and steelmakers are now away from the market, with limited deals getting concluded throughout the week. It is expected that by the end of the month market would see a negative price correction.
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