India: Imported Scrap Offers hovering at USD 370-375/MT

Containerized Scrap offers to Indian market remain stable. Offers for HMS 1&2 are stable and in the range of USD 370-375/MT CFR Nhava Sheva.

Mills seem to be uninterested towards import of Scrap, owing to higher imported offers. Offers from Middle East for HMS 1&2 are being heard at around USD 370-375/MT CFR. Whereas, European offers are at USD 375/MT.

A consignment of HMS 1&2 and LMS from Middle-East was sold at USD 370/MT & USD 340/MT CFR Nhava Sheva respectively. In addition, a fresh deal of LMS bundle Scrap from Dubai was closed at USD 341/MT Nhava Sheva on 16 Sep.

Turning Scrap from Europe is being offered in the range of USD 340-345/MT CFR Mundra/Nhava Sheva. As per market sources, few deals were even settled at these levels owing to viability of the contract.

Scrap offers from South Africa is at USD 365-370/MT and from West Africa, it is at around USD 360-365/MT. Mills are actively negotiating offers from West Africa to USD 350-355/MT levels.

Similarly, Blue Steel is offered in the range of USD 405-410/MT CFR Nhava Sheva/Kandla, but buying interest is assessed at USD 400/MT CFR.

Mills are showing greater dependency on domestic Scrap which is currently at around INR 27,200/MT*. This increased dependency has lead to shortfall in domestic supply. Few mills reported their bookings of imported material from Middle-East explaining the shortage in domestic Scrap availability in market.

Similarly, in Jalna, which is one of the major smelting belt in Western India, domestic Scrap prices are increased by INR 1,000/MT in almost 10 days time, touching INR 28,000/MT*. Premium HMS Scrap are heard at INR 28,200-28,300/MT* levels.

In international market, Scrap price at Turkey is again back to old level of USD 372-375/MT CFR Turkey, which had touched USD 385-390/MT after the end-of-festival (Eid). Seaborne Iron ore prices hitting 5-year low and Billet, which is offered at competitive prices from China & other CIS nations is creating pressure on Turkey’s scrap consumption, creating resistance for higher offers. Market here at Turkey is expected to touch USD 370/MT levels soon.

(* denotes prices inclusive of all taxes)