India’s imported scrap market continued to remain dull for yet another week. No active bookings were recorded this week due to a discrepancy in bids and offers. However, Pakistan concluded a few deals for 10,000-15,000 tonnes (t) of UK-origin shredded scrap recently during the ongoing Eid holidays, at around $545-550/t CFR Port Qasim, sources confirmed to SteelMint.
“The market in India is very quiet. For shredded, offers are around $545-550/t CFR Nhava Sheva in containers. No buyers in India are even close to those numbers when suppliers can easily target Pakistan-based buyers at these numbers,” said a trader from a global firm.
SteelMint assessment for UK/EU origin shredded stands at $540/t CFR Nhava Sheva levels.
Imported scrap offers to India remained slightly up this week with limited deals heard for West Africa-origin HMS, SteelMint learnt.
Recent deals and offers
- Fresh offers for UK/EU-origin shredded are being quoted at around $545-550/t CFR levels, up by $5/t w-o-w.
- HMS1 from Dubai stands at $485-490/t CFR while same-origin HMS 1&2 (80:20) are being offered at $475-480/t CFR levels.
- Furthermore, UK-origin HMS 1&2 (80:20) are not cited at $490-495/t CFR levels.
- Deals of West Africa-origin HMS were heard at $450-460/t CFR Mundra.
Indian mills are still struggling with lower finished steel sales in the domestic market. However, movement in exports have kept the market going. Mills are getting their scrap requirement fulfilled from the local market itself, which has reduced the imported scrap demand. Once mills resume their full production, demand for imported scrap may automatically increase, SteelMint learnt from a market source.
Domestic scrap market continues to rise: Steel melting scrap prices continued to rise across scrap-based markets except in Chennai, as per reports. Factors that seem to be driving prices are healthy consumption in the northern region as well as on account of improvement in sponge iron and semi-finished steel prices. However, prices in western India remained stable on normal buying interest.
SteelMint’s assessment for HMS in western India is at INR 33,900/t DAP Mumbai, up by INR 700/t w-o-w. The same is at INR 34,100/t DAP for Jalna, up by INR 1,100/t w-o-w.
Meanwhile, prices of sponge iron continue to keep strong on account of sufficient orders with suppliers as well subdued demand. About 3,000 t of P-DRI deals were reported at INR 29,700-29,800/t, while floated offers were at INR 29,800-30,000/t exw and FoR Raipur. SteelMint’s benchmark sponge P-DRI (FeM 80%) prices increased further by INR 600/t to INR 29,700/t, exw-Raipur on a weekly basis.
Rebar prices robust despite limited demand: Induction furnace route rebar prices increased in most of the major markets except in Raipur in central India. As per trade sources, despite limited trades and buying enquiries, rebar prices remain strong owing to minor fluctuations in semi-finished steel prices and moderate transactions in rebar over the last couple of days.
According to SteelMint’s assessment, induction furnace (IF) grade rebar prices in Mumbai stand at INR 47,700/t exw, up by INR 500/t w-o-w.
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