The overall imported Scrap market in India remains dull this week. Offers are floating in the range of USD 365-370/MT CFR India, as buying interest remained extremely bearish owing to falling steel prices and weakening Indian Rupee.
Sales of finished Steel at major markets has declined to such an extent that the price of imported Scrap at Mumbai & Chennai are trading almost at par with each other. Earlier, the price difference between the two markets was to the tune of USD 10-15/MT.
European offers for HMS 1&2 in Mumbai & Chennai remain at USD 370/MT on CFR basis, whereas Middle East offers are hovering at around USD 365-370/MT CFR Mumbai.
With the end of Ramadan, international Scrap market has become quite active. As a result, market is witnessing frequent offers. A German scrap trader while talking to SteelMint said,
“Currently, we are offering Shredded Scrap at USD 395/MT, Busheling at USD 405/MT and high quality of Turning Scrap at USD 355-360/MT CFR Chennai. We are also offering to countries like Pakistan, Turkey & Indonesia as we are getting good realization trading with these countries as compared to India.”
Present offers for HMS Scrap from West Africa are around USD 360/MT CFR Chennai; however buyers are taking interest at USD 350/MT levels.
|
Grade |
Origin |
CFR |
Offers in USD/MT |
|
HMS 1&2 |
Middle East |
Nhava Seva |
365 |
|
Europe |
Nhava Seva |
370 |
|
|
Europe |
Chennai |
370 |
|
|
W.Africa |
Chennai |
360 |
|
|
HMS 1 |
Middle East |
Nhava Seva |
380 |
|
Shredded |
Middle East |
Nhava Seva |
390 |
|
Europe |
Nhava Seva |
395 |
Depreciating Currency makes Import Costlier
Exchange rate, which was at 59.8 a week before, has depreciated to 61.3 levels against USD. This is making Scrap import more expensive and further adding up to the resistance from Scrap traders & importers.
Falling Billet Prices put Pressure on Scrap Demand
Indian Billet prices have steeply fallen upto INR 1,000/MT in a month’s time, forcing manufacturers to cut down their production. Manufacturers are also concerned over rising imports of Re-bar from China & Ukraine.
Indian Sponge Iron Prices find Support on Low Availability of Iron Ore
With rising scarcity of Iron ore in domestic market, Sponge iron prices have continued to show some strength. Prices in Eastern region have moved up to INR 600/MT in last few trading sessions. Sponge iron contributes almost 25% of India’s crude steel production.
It looks that steel prices may stabilize at current levels owing to fall in production. Most of the traders & manufacturers are hopeful that prices are expected to rise post monsoons when construction activities gain momentum.
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