Imported scrap prices to India continued to rise but buyers were hesitant on bookings. The Covid outbreak in India has largely affected business and buyers are preferring domestic alternatives thanks to the increased imported offers. A hike in Turkish scrap prices has also supported scrap prices in South Asia.
The Indian market is quiet and players are uncertain since domestic finished steel sales have gone down coupled with the lockdowns in several regions. Trends will be clear post-Eid holidays, highlighted sources.
SteelMint’s assessment for containerized shredded scrap of UK/Europe-origin stands at $520-525/t CFR Nhava Sheva, rising by around $40/t week-on-week (w-o-w). Offers in India have hit a new high this week supported by global trends.
Recent offers:
- HMS 1&2 (80:20) of UK/Europe origin currently stands at $500/t CFR Nhava Sheva levels.
- Offers for Dubai-origin HMS 1 in containers are at $500-505/t CFR Nhava Sheva.
- Few deals of around 2,000t of UAE-origin HMS 1&2 and HMS (90:10) were reported by a Gujarat-based steel maker.
Melting scrap prices hit record-high following global uptrend: Steel melting scrap prices in India hit an all-time high on bullish sentiments in the iron ore and scrap markets. Domestic and global scrap prices have been witnessing a significant rise since the past few days. However, demand remained weak as buyers retreated from procuring scrap at these elevated price levels. Sponge iron prices sharply moved up this week by INR 2,400/t w-o-w. SteelMint’s assessment for HMS in western India is at INR 36,900/t DAP Mumbai, up by INR 1,300/t w-o-w, and the same is at INR 36,700/t DAP for Jalna, up INR 1,200/t w-o-w.
SteelMint’s benchmark sponge iron (P-DRI) price rose sharply to INR 31,400/t ($430), exw Raipur, Central India. However, spot steel trades and prices have come down in the past two days on limited inquiries for higher offers.
Rebar prices continue to rise despite limited demand: Induction grade rebar prices increased on account of higher raw material prices and lower production at mills. However, trade activities and buying inquiries for rebar steel remained weak in all the regions.
According to SteelMint’s assessment, induction furnace (IF) grade rebar price in Mumbai stands at INR 50,900/t exw, significantly up by INR 600/t w-o-w.
Outlook: According to market sources, offers are likely to rise further post-Eid holidays.
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