Imported Scrap prices to India correct by USD 5-10/MT on falling Billet prices in domestic market.
Imported Scrap prices corrected by USD 10/MT this week on the backdrop of falling Billet & Scrap prices in Indian domestic market. Billet prices have corrected upto INR 700/MT (USD 11/MT) on account of poor demand from the construction sector. Importers & traders expect the prices to fall further.
Deals for HMS 80:20 from Europe were settled at USD 375/MT CFR Mumbai. Prices have depreciated by USD 5-10/MT as compared to last week. Similarly, HMS containers offer from Middle East are traded at around USD 375/MT CFR Mumbai.
Speaking to Indian Scrap importers, it was assessed that falling steel prices in domestic market owing to monsoon led to fall in Scrap demand. However, some importers are still holding offers in anticipation that short supply of Iron ore may lend some support to Scrap prices.
Domestic Scrap is sold at lower prices and still maintaining a downtrend. This led to strong preference for domestic materials than imported. Scrap traders here had to correct the offers to create the parity between domestic and imported.
Moreover, it is noteworthy that Billet prices have depreciated by INR 700/MT (USD 11/MT) whereas Scrap prices were down by INR 1,200/MT (USD 20/MT) in Punjab, which is one of the largest buyers of imported Scrap.
Many market participants are cautious in booking orders as of now since they expect the imported Scrap offers to fall further. Offers from South Africa are also floating at around USD 370/MT CFR Mumbai.
Imported Scrap Offers
|
Grade |
Origin |
Offers (in USD) |
|
HMS 1&2 |
Middle-East |
375 |
|
HMS 1&2 |
Europe |
375 |
|
HMS 1&2 |
S.Africa |
370 |
|
HMS 1 |
Europe |
390 |
|
HMS 1 |
Middle East |
390-395 |
|
Shredded |
Europe |
395-400 |
|
Shredded |
US |
400 |
Indian Sponge Iron Prices show Resistance
Indian Sponge iron prices have showed resistance at current levels owing to restricted supply of Iron ore in domestic market. Despite falling Billet & Scrap prices, Sponge iron have not corrected in the same proportion. On one hand where, Scrap & Billet prices have corrected over INR 700/MT, Sponge iron prices on an average have corrected only by INR 200-300/MT across the India.
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