Imported scrap prices to India have seen a downward correction in recent deals concluded this week. Northern and western-India based mills booked some volumes of HMS of South Africa and West Africa-origin. However, deals for shredded scrap continued to remain on the lower side.
“Disparity in bids and offers are the main reason for the market remaining inactive. No deals were concluded from last two-three months for high-grade scrap, shredded. The market is likely to improve from next month as construction activities will pick up ahead of the festive season,” observed a source.
Recent offers
- 500 tonnes (t) of UAE-origin HMS 1&2 (80:20) have been booked at $455-458/t CFR Nhava Sheva. levels. But, majority of the suppliers were resisting at $460/t CFR levels.
- 500 t of West African-origin HMS (80:20) was booked at $445/t CFR Nhava Sheva levels.
- 2,500 t of South African HMS1 has been booked at around $465/t CFR West coast of India.
- Indicative offers for imported shredded scrap were heard at $520-525/t. However, no firm offers are available, due to suppliers shifting to other markets.
Pakistan and Bangladesh market are still comparatively strong as compared to India, however ferrous scrap import prices into Pakistan have fallen by around $5-10/t, as only a limited number of deals happened recently. SteelMint’s bi-weekly assessment for shredded scrap of UK/EU-origin stands at $515/t CFR Port Qasim. However, a few offers were heard at $520/t CFR.
Domestic scrap prices fluctuate across market: Domestic scrap prices across the market showed variation throughout the week. Due to tight material availability, the prices fluctuated a lot in the major scrap-consuming regions. Prices might get adjusted as per finished steel movements and unviable conversion spreads. Majorly in Jalna and other regions people started to cut their production by 25-30% and started using the local scrap however, steelmakers expecting that in the coming day market might improve as construction activities improve, SteelMint learnt from sources.
SteelMint’s assessment for HMS was recorded at INR 34,800/t DAP Mumbai, down to INR 200/t, w-o-w, while prices for Jalna are also at INR 34,300/t DAP, down INR 700/t, w-o-w.
India’s IF-route re-bar prices up slightly: Market participants informed that re-bar trade and demand were impacted by higher prices, which pressured sellers to lower offers. Given the uncertainty in semi-finished steel prices, instead of booking bulk volumes traders are procuring limited quantities. Prices are expected to remain weak or fluctuate marginally.
As per SteelMint’s assessment, induction furnace (IF, Fe 500) re-bar prices in Mumbai stand at INR 46,500/t exw, up by $800/t on week.
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