India: Imported scrap offers rise further; UAE origin trades remain a preference

Indian scrap market has observed few trade activities after market resumed post-Holi holidays early this week. Offers followed the global price uptrend and moved up by $25-30/t w-o-w. Buyers were actively preferring the UAE origin HMS scrap over other origins.

However, imported shredded scrap trades in India remained silent owing to aggressive buying from Pakistan based mills at increased offers. Imported scrap trades in Pakistan have picked up aggressively in the last two days.  Deals of 15,000-20,000 t of UK origin containerized shredded scrap have been confirmed by SteelMint at $450-455/t CFR Port Qasim recently. Prices have moved up by $10-15/t against the beginning of the week.

“Shredded in containers was sold to Pakistan at $450-455/t CFR Qasim basis in the last two days, whereas material is not available at this price now from overseas. Buyers need material but suppliers don’t have stock to offer at this price level” shared a participant from a global scrap trading company.

Recent offers & trades-                                                   

• Trades for UAE origin HMS 1 and HMS were reported at $430/t & $425/t CFR Nhava Sheva respectively
• A prominent scrap buyer has booked 2,500 t of busheling bundle scrap from Malaysia this week at $485/t CFR Vizag basis.
• In other deal concluded by  Western India based steel mill  a decent quantity of PNS from UAE at $428/t CFR Nhava Sheva basis was booked.
• Price indications for EU origin Busheling bundles was heard at $470-475/t CFR Vizag basis

Domestic scrap prices in Mumbai hit all-time high: Melting scrap prices have witnessed a rise in the Indian markets, supported by a hike in semi-finished and finished steel transactions. SteelMint’s assessment for HMS in Western India is at INR 31,600/t DAP Mumbai, up by INR 1,700/t w-o-w and in Chennai it has moved up by INR 1,000/t w-o-w. Prices in Mumbai have hit an all-time high since SteelMint’s assessment started in May’15.

Induction grade rebar prices witnessed a fluctuation across the regions. In most of the regions, manufacturers either kept their offers stable due to adequate future orders and moderate transactions or increased prices owing to higher raw material cost. In addition to it, primary mills are likely to hike finished steel prices sharply for April which has further boosted market sentiments. SteelMint’s assessment for Rebar (IF grade) in Western India moved up significantly by INR 1,700/t to INR 47,800/t exw Mumbai.