India: Imported scrap market quiet on bid-offer disparities

Indian mills stayed away from bookings because of disparities in bids and offer following falling steel margins on subdued domestic demand.

Market insiders kept their eyes on domestic raw material substitutes. Moreover, the finished steel market remained slow amidst the monsoon. Steel mills have already stocked up inventory.

• Fresh shredded offers were heard at $530-540/t CFR. However, no interest has been heard above $520/t from buyers. Induction furnaces are not interested in shredded, said a source.
• HMS 1&2 offers were at $470-475/t CFR from Dubai. But bids seem to have dropped to $463-465/t CFR levels.
• UK HMS 1&2 offers in containers were heard at around $495-500/t CFR Nhava Sheva

The rupee (INR) is trading at 74.14 against the dollar ($) vis-à-vis 72.8 levels a month back, making imports costlier.

“Not much trade is happening in Chennai. There are hardly any sales happening since the last one week. Demand in India is dull. Pakistan is offering $530/t for shredded and the same in India are at $510-515/t CFR,” said a trader while speaking about buying inquiries in southern India.

In Pakistan, trades have improved from last week and a few deals have been concluded for around 6,000 t of containerised shredded scrap of UK/EU-origin in the range of $528-533/t, CFR Port Qasim.

Domestic scrap prices in India fall: Melting scrap prices were uneven on 25 Jun’21, dropping by around INR 1,300/t. Traders have turned cautious and are looking for stable sentiments, not expecting scrap prices to witness any further correction due to improved capacity utilisation levels, especially in the northern region.

Meanwhile, sponge iron prices slumped, tracking the fall in billet prices. SteelMint’s assessment for HMS in western India is at INR 33,900/t DAP Mumbai, down by INR 600/t w-o-w, and the same is at INR 33,800/t DAP for Jalna, down by INR 200/t w-o-w. SteelMint’s benchmark sponge P-DRI (FeM 80%) prices dropped further by INR 600/t to INR 30,000/t, exw-Raipur, on 25 Jun’21.

Rebar prices drop further on limited trade: Induction furnace (IF) grade rebar prices declined further by up to INR 1,500/t in most of the major markets in India. Dull demand for rebar and weak sentiments in the semi-finished steel market is dragging down prices, thereby forcing manufacturers to reduce offers. According to SteelMint’s assessment, induction furnace (IF) grade rebar prices in Mumbai stand at INR 45,400/t exw, falling by INR 1,400/t w-o-w.