India: Imported Scrap offers at USD 370-375/MT

Imported scrap offers in India have remained unaltered at the level of USD 370-375/MT owing to dull Steel demand and affordable domestic Scrap.

Imported market in India is stable from a month’s time. Dull market coupled with cash crunch is not letting imported Scrap offers grow to its defined levels. Offer from Middle East are at around USD 370-375/MT and there are just handful of deals heard at these levels.

Similarly HMS offers from Europe are at around USD 375/MT and from South Africa at USD 370-375/MT CFR Nhava Sheva.

Turning Scrap offers of European origin was noticed at around USD 345/MT and Shredded at USD 395/MT. But no deals were heard settling for Shredded as these offers were too high as per the Smelters emotions.

An offer of HMS 1&2 of Dubai origin is floated in market at USD 372/MT CIF Nhava Sheva/Mundra port (with 6-8% CI &GI). Quantity offered is around 200-500 MT.

On the other hand fresh deal of HMS 1&2 was settled at USD 370/MT and LMS at USD 340/MT CFR Mumbai of Dubai origin.

What Market Participants say about it?

While talking to a TMT manufacturer based at Mumbai, we at SteelMint got to know that owing to increased preference of domestic Scrap over imported, there is a minor shortfall in supply of domestic Scrap.

The official reported, “We have booked few MT of HMS 1&2 at USD 375/MT (with 5-10% GI), as we are facing difficulties in procuring domestic Scrap.”

Mills are more dependent on the domestic scrap instead of imported ones, explaining the luxuries offers of imported Scrap in market coupled with dull demand.

Smelter based at Jalna shared, “Even though domestic prices are on a slight positive node, mills still prefer domestic over imported. Scrap import for us looks far until domestic Scrap reaches to the level of INR 29,000-29,500/MT (inclusive of all taxes)”

Currently, domestic Melting Scrap at Jalna is available at increased price of INR 27,500-28,000/MT (inclusive of all taxes) which was around INR 27,000-27,200/MT couple of days back.

Market for imported Scrap still seems to be dull and is expected to remain so till the end of this month, after, witnessing the plants that are still running under capacity.