Indian mills keep away from imported scrap bookings amid market uncertainties

• Few shipping lines defer accepting bookings due to Suez canal blockage
• UAE origin HMS is expected to gain preference over other origins

Imported scrap market in India remained quiet this week after few trades were reported last week. Imported scrap offers mostly remain unchanged w-o-w. Market uncertainties due to freight rates, Suez canal blockage, upcoming Holi festival, and financial year-end remained the major factors that kept buyers away from the market, SteelMint understands.

“Because of uncertainty in freight rates, most suppliers are not quoting any offers till clarity emerges which is further resulting in cancellation of container bookings. There is no time guarantee when shipments will happen and there is a shortage of containers”, shared a participant from a major steel mill.

Another source has confided that “shipping lines have stopped booking containers from UK/EU, because of the Suez Canel problem. However, Middle East imported HMS scrap trades were reported and due to shorter lead time, Dubai origin prices are expected to go up”.

Recent offers & trades-

• Offers from UK/EU for imported shredded scrap are being quoted at $430-435/t CFR Nhava Sheva , stable w-o-w. However, no trades were reported at this level.
• UK, UAE and Australia origin HMS 1&2 (80:20) is now being offered at $400-410/t CFR levels. Few trades of UAE origin HMS were heard around $405-410/t CFR.

Domestic melting scrap prices exhibit mixed response: Domestic scrap prices saw a fluctuation in most of the locations while it remained stable in other markets. SteelMint’s domestic steel scrap index has moved up by INR 200/t today and is assessed at INR 34,300/t DAP Mandi Gobindgarh basis

SteelMint’s assessment for HMS in Western India is at INR 29,900/t DAP Mumbai, up by INR 100/t w-o-w, while it is at INR 30,200/t DAP level for Jalna, increasing sharply by INR 400/t w-o-w.

Secondary rebar price rebounds towards weekend: Induction grade rebar market has witnessed limited buying inquiries. After witnessing a price decline early this week, prices have rebounded towards weekend. SteelMint’s assessment for Rebar (IF grade) in Western India stands steady at INR 46,100/t exw Mumbai, slightly down by INR 200/t w-o-w.