India: Imported scrap trades slow down further on lockdown measures & weak rebar domestic demand

India’s imported scrap trade has slowed down due to stringent lockdown restrictions that have been implemented in different parts of the country amidst an exponential growth in COVID cases. This has forced many secondary steel producers (alloy & stainless steel producers) to curtail production, SteelMint learnt from its credible sources.

“Markets in India are stagnant due to rise in Covid-19 cases, so difficult to analyse where it is heading. International market is up after Turkey-based mills resumed bookings at increased offers. However, mills in India are cautious in placing bookings” shared a prominent scrap trader.

Imported scrap offers to India remained mostly stable w-o-w, however, limited trades were reported.

Recent trades & offers:

• Shredded offers in containers remain mostly firm at $460-465/t CFR Nhava Sheva basis
• UK/EU and Australia origin HMS 1&2 (80:20) are being offered at $440/t CFR Nhava Sheva and $445/t CFR levels respectively
• UAE origin HMS1 offers stand stable from last few weeks at $440/t CFR Nhava Sheva basis, few trades in small quantities have been reported
• A prominent steel mill has booked MS Shredded and Busheling bundle scrap for 1000 t each at $455/t CFR Vizag and $500/t CFR Vizag basis respectively early this week

Domestic scrap prices rise: Domestic scrap prices rose up by INR 600/t w-o-w. SteelMint’s assessment for HMS in Western India is at INR 33,500/t DAP Mumbai, up by INR 200/t w-o-w and the same is at INR 32,700/t DAP level for Jalna, up by INR 700/t w-o-w.

The factors supporting the price hike are as follows:

• Inadequate scrap supply movement owing to lack of oxygen
• Hike in semi-finished steel prices
• Improved bids in the recent pig iron auction

Rebar sales remain dull: Induction grade rebar prices gained in most of the major markets, owing to rising cost of billet. However, trade activities and buying inquiries for rebar steel remained weak in all regions, due to lockdown. Rebar prices in the near term are expected to remain supported by raw material cost, sources have reported. According to SteelMint’s assessment for induction furnace (IF) grade rebar price in Mumbai stands at INR 49,100/t exw.