India: Imported scrap offers up, bids yet to pick up

Imported scrap offers to India have rebounded this week, however, trades are yet to improve owing to the disparity between bid and offer. Buyers continue their wait-and-watch mood due to high price volatility seen in domestic steel prices in the secondary segment.

SteelMint’s assessment for containerised shredded stands at $430/t CFR Nhava Sheva level, increasing sharply by $25/t w-o-w.

“Haven’t heard of any business in India. With a rebound in Turkey and healthy inquiries from China, the gap between bids and offers would only increase in coming weeks” shared a global trader with SteelMint.

Recent offers-

• Fresh offers for shredded is being offered at around $430-440/t CFR Nhava Sheva level, whereas, bids are comparatively low which currently seems less attractive
• HMS 1&2 (80:20) from UK/EU is being quoted around $390-400/t CFR level, whereas same from UAE origin now stands at $360 levels
• HMS 1 from UAE is being offered at $380-390/t CFR level

“Yards are not lowering the offers on expectations of price recovery. No firm trades apart from HMS trades from Dubai were heard this week. Southern India based markets are also less active in booking imported scrap”, cited another trader.

Domestic melting scrap prices up w-o-w- Melting scrap prices maintained its uptrend across various Indian markets. According to market sources, traders have held back their offers and are offering at a limited range as they are expecting a further uptrend in semi-finished steel market. SteelMint’s assessment for HMS in Western India stands at INR 27,400/t DAP Mumbai (up by INR 1,500/t w-o-w) and at INR 26,700/t DAP Jalna level (up by INR 900/t w-o-w). However, towards the weekend, domestic scrap prices witnessed a fall by INR 100-600/t d-o-d.

SteelMint’s assessment for Rebar (IAF grade) in Western India stands at INR 42,700/t exw Mumbai (up by INR 700/t w-o-w). Domestic steel prices have seen sharp volatility this week and thus buyers are still uncertain of future price movements, hence buyers have kept away from booking imported scrap. Mills have continued to prefer domestic substitutes like scrap and sponge iron.