India: Imported scrap prices up by over $15/t w-o-w

Global scrap price moved northward this week, with heightened trading activity seen in Turkey, SteelMint understands. Indian scrap offers too follow the global trend, and thus offers have climbed further by $10-15/tonne (t) week-on-week (w-o-w). Trading picked up too.

A leading steel mill in India has bought around 500 t of shredded scrap in containers recently, as per a SteelMint report. The deal was finalised for Europe-origin shredded scrap at around $520/t, CFR Mundra, sources informed. Following active trade in Pakistan, offers to India also increased to $530-535/t, CFR Nhava Sheva for shredded scrap.

Market insiders expect that prices will go up further. Hence buyers have paused their main bookings since last week. They opt to wait and watch and may start ordering again next week, SteelMint learnt from trade sources.

• SteelMint’s assessment for UK/Europe-origin containerised shredded scrap stands at $525-530/tonne (t) CFR Nhava Sheva, witnessing a hike of $10-15/t week-on-week (w-o-w).
• Fresh offers for UAE-origin HMS 1 are now at $495-500/t levels and HMS 1&2 (80:20) at $490/t CFR levels, registering a sharp hike of around $15-20/t w-o-w.

“Scrap suppliers are able to get a better price in Nhava Sheva than in Chennai”, said a scrap trader.

Domestic scrap price fluctuates: 
There was a fall in sponge iron and semi-finished steel prices seen early this week. However, towards the weekend, prices have started rebounding on demand-supply mismatch.

SteelMint’s assessment for HMS in western India is at INR 34,600/t DAP Mumbai, down by INR 300/t w-o-w, and the same is at INR 34,300/t DAP for Jalna, down by INR 300/t w-o-w.

Secondary rebar prices fall on soft demand, subdued trade:
The induction furnace grade rebar market remained subdued both in terms of spot trading and buying inquiries. Rebar prices declined by INR 500/t in the major supply locations, SteelMint’s assessment shows. In a few locations, however, producers preferred to keep offers stable and provided discounts. Volatile semi-finished steel prices, as well as limited activity at construction sites, are pressuring rebar prices. In the near term, sources expect rebar prices to witness minor fluctuations. According to SteelMint’s assessment, induction furnace (IF) grade rebar prices in Mumbai stand at INR 47,500/t exw, down by INR 500/t w-o-w.