Indian Scrap Importers resist on falling Steel Prices

• Imported HMS (80:20) Scrap offers correct to USD 370-375/MT CFR Nava Sheva
• Supply weakens from Middle East amid Ramadan
• Indian Billet prices correct upto INR 1,500 /MT in last one month

Falling Billet prices in Indian domestic market has weighed on Scrap demand making prices to correct upto USD 5/MT last week. Scrap contributes around 15% of India’s crude steel production.

Billet Prices correct upto INR 1,500/MT M-o-M

Billet prices had corrected about INR 1,500/MT in last one month owing to seasonal slowdown during monsoons. Furnaces based in Northern & Western part of India, which are largely dependent on Scrap, have reduced its production on falling prices.

“Prices have corrected more than expectation in last one month. Due to weaker margins, we have cut down our production. Containerized Scrap offers from Europe & Middle East are hovering in the range of USD 370-375/MT based on quality and delivery terms,” said a steel furnace owner based in Wada, Mumbai.

Low Demand for Imported Scrap

Scrap demand has declined owing to falling steel prices, stated Indian Scrap importers. They also mentioned that supply is limited from Middle East owing to Ramadan and currently they are sourcing from Europe & Africa.

Indian importer who has a yard in Middle East claimed to have settled HMS 80:20 Scrap at USD 375/MT CFR Nava Sheva to Pune based smelter.

Indian Sponge Iron Prices resist over restricted Supply of Iron Ore

Sponge iron contributes about 25% of India’s total crude steel production. The industry is currently struggling for consistent supply of Iron ore, which is supporting Sponge prices to sustain even after steep fall in Billet prices.

Speaking to market participants, it was ascertained that inconsistency in supply of Iron ore is likely to support Sponge iron prices to certain extent in domestic market.