Following the global trend, imported scrap prices into India continued to decline since last couple of months, falling to around two-month low. However, trading activity slightly picked up since the last week after offers declined further.
Recent offers
- Price indications for the UK/EU-origin shredded in containers fell to $540/t CFR Nhava Sheva, down further by $5-10/t w-o-w.
- UAE-origin HMS 1 is being offered at $470/t CFR.
- Western India-based steel mill booked around 1,000 t of UAE-origin HMS 1&2 (80:20) in containers at $460/t CFR Kandla basis.
- Another western India-based steel mills booked around 3,000 t UAE-origin HMS 1&2 (80:20) at $460/t CFR.
Buyers are expecting that prices may fall further by around $10-15/t in the next two weeks in absence of Turkish buying. Meanwhile, the scrap yards have stopped taking fresh orders from the suppliers to accomplish the pending orders before the winter holidays start. Hence, a sharp fall in prices is unlikely, SteelMint understands.
Domestic market highlights –
- Price gap between domestic, imported prices narrows: Melting scrap prices showed mixed trends across markets amid supply concerns. Prices rose slightly as trade activities for semi-finished and finished steel products picked up. Prices in the near term are likely to remain range-bound, trade sources informed. SteelMint’s assessment for HMS (80:20) was recorded at INR 36,200/t ($476/t) DAP Mumbai, up by INR 600/t w-o-w while prices in Jalna were assessed at INR 35,100/t DAP ($462/t), up by INR 100/t ($1/t) w-o-w. The landed costs of imported scrap to Mumbai come to around INR 36,950/t. The price gap between imported and domestic scrap has narrowed down to INR 1,000/t this week against INR 1,500/t assessed last week.
- Sponge iron prices gain momentum: Sponge iron P-DRI (FeM 80%) prices rose by INR 1,100/t ($14/t) w-o-w to INR 28,800/t ($379/t) exw-Raipur backed by a hike in pellet and billet prices.
- IF-grade re-bar prices up: Induction furnace rebar prices witnessed an improvement as trading activity picked up across regions. However, only sporadic contracts for small tonnages were reportedly booked. Improvement in trade volumes enabled mill owners to liquidate inventory, which indicates that prices may find stability. Prices increased by INR 1,000/t ($13/t) w-o-w to INR 50,300/t ($662/t) exw-Mumbai.
Outlook
Imported scrap trade in India may pick up further in the near-term as other nearby destinations like Pakistan and Bangladesh have also slowed down purchases amidst lower bids.
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