Indian steel mills cold shoulder imported scrap bookings as offers surge

With anticipation of a hike in prices after the CNY holidays and hike in container freight, imported scrap offers have continued to move up further for yet another week in India. However, trades have slowed down.

Traders and yard owners managed to conclude deals at increased offers in Pakistan, but Indian buyers remained on the sidelines. Few market insiders are of the opinion that this is a short-term hike and prices may come down soon.

SteelMint’s assessment for containerised shredded of UK/US origin stands at $452/t CFR Nhava Sheva level, increasing sharply by $25/t against end of last week.

“Buyers in India remained away from booking imported scrap due to high price volatility and uncertainty on market outlook. Thus, they have opted for a ‘wait & watch’ policy for now and likely to resume next week”, shared a prominent trader.

Recent trades and offers-

• Shredded is being offered at around $450-460/t CFR Nhava Sheva level, up by $20 w-o-w
• HMS 1&2 (80:20) from UK/EU is being quoted around $400-415/t CFR level, whereas same from UAE origin now stands at $410-412/t levels
• HMS 1 from UAE is being offered at $415-425/t CFR level
• Few deals for West Africa origin HMS 1&2 (80:20) have been concluded at $370/t CFR Goa basis. Whereas around 5,000 t of HMS 80:20 from the same origin have been booked at $340-345/t CFR Mundra basis

Domestic melting scrap prices climb on bullish market sentiments: Domestic scrap prices maintained its journey towards north on back of a considerable hike in semi-finished steel prices as trade participants booked adequate finished steel volumes in the last couple of days, trade associates reported to SteelMint.

SteelMint’s assessment for HMS in Western India stands at INR 28,900/t DAP Mumbai (up by INR 1,500/t w-o-w) and at INR 27,900/t DAP Jalna level (up by INR 1200/t w-o-w). Furthermore, prices are expected to increase in the near-term specifically in the Western region.

Rebar prices in secondary markets move north: SteelMint’s assessment for Rebar (IAF grade) in Western India stands at INR 44,400/t exw Mumbai (up by INR 1,700/t w-o-w).