India: Imported scrap trades remain silent for yet another week

Imported scrap market in India continued to remain in limbo. Most of the mills are procuring domestic scrap & sponge iron as it is more costeffective. Due to the weak Indian domestic market, mills are not booking any cargo currently and have adopted a wait- and- watch approach for the time being, SteelMint learnt from its sources. Buyers are also cautious as the budget announcements are round the corner.

SteelMint’s assessment for containerised shredded stands at $420/t CFR Nhava Sheva level, down by $15/t w-o-w.

“No new sales are being done by Europe, UK, and USA yards for Feb loading at the current price level of $420/t CFR to India or Pakistan. All the trades are taking place in the high seas for cargoes which were bought last month by Indian traders or suppliers,” a prominent trader has confided to SteelMint.

Recent trades-

• A prominent Indian steelmaker has booked containerised 2,000 t of shredded at $420/t CFR Mundra this week and around 3,500 t of M S Turning from Europe.
• Dubai origin HMS 1 and HMS (80:20) are being offered at $370-375/t CFR and $365-370/t CFR basis respectively.

“Current market sentiments are low hence prices sliding down is more possible than going back up. No buying interest in India currently and most of the buyers are looking at $340-350/t for HMS 1″ shared a Western India based trader.

Domestic scrap prices in India see minor fluctuations– Melting scrap prices remained volatile. SteelMint’s assessment for HMS in Western India stands at INR 26,200/t DAP Mumbai (down by INR 200/t w-o-w), and for Jalna stands at INR 26,500/t DAP Jalna level (up by INR 400/t w-o-w).

Domestic sponge iron prices fall– SteelMint’s benchmark C-DRI price stood at INR 24,500/t exw-Raipur, lower by INR 300/t w-o-w. Weaker finished steel sentiments in secondary market and decline in billet offers have kept the market bearish.

Outlook– Yards are still not offering at such lower price levels as those of high seas. Few trade sources are of the view that prices may rebound after the Chinese New Year holidays. However, uncertainty in market are likely to keep trades on the lower side.