A consignment from US port is shipped at around USD 390-400/MT CFR Kandla.
According to sources of SteelMint, a vessel of 44,000 MT is expected to reach Kandla port in first week of August. As per market sources, the cargo is imported by a Bhavnagar based importer, Anupama Steel. The vessel contains around 20,000 MT Shredded Scrap, 20,000 MT HMS and 4,000 MT Turning Boring Scrap. Trade sources believe that this consignment is shipped from US Western Coast at an average price of USD 390-400/MT CFR Kandla.
Meanwhile, imports of Scrap have declined by 8% M-o-M in July. Slowdown in finished steel market and fall in Ingot prices has reduced the imports of Scrap metal last month. As per data available with us, the total volume of Scrap imported in July has depreciated by around 8.3% as compared to June and stands to be at around 413,800 MT. Imported Scrap prices have also corrected by 2-3% M-o-M.
Trading activities in Scrap markets remained lower on account of Ramadan. A poor demand forced furnaces to cut down production, which led to lower realizations. It is expected that demand for imported Scrap will remain under pressure in coming weeks.
Imports in Chennai
Imports of Scrap in Chennai fell by 5% M-o-M and even witnessed a slight correction in prices. It is learnt from market sources that offers from Europe have corrected up to USD 5/MT at around USD 375/MT for HMS 1&2.
“We are facing temporary shortage in domestic market for which we are currently relying on Scrap from Europe to meet our immediate needs. We are quite cautious in booking bulk quantities at present owing to sluggish demand in the domestic market,” said a smelter at Chennai.
Scrap consumers in Chennai were reluctant to purchase Scrap from US owing to high prices.
Imports in Mumbai
Scrap imports in Mumbai fell by 11% M-o-M to 65,000 MT. Mumbai imported around 27% of it’s Scrap from UAE in July.
Offers here have started to decline, which was stable in Ramadan. Prices trade at around USD 365-370/MT, which were at USD 370-375/MT a week back.
Market participants at Mumbai expect prices to fall further, as the Middle East market reopens after the end of Ramadan. This will increase the supply of Scrap in imported market and result in further price correction.
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