India: Imported scrap market lacks action as buyers await further price drop

The ongoing Eid holidays in major countries like Turkey, the UAE, and some parts of South Asia slowed down market activities. The absence of active trade continued to pull down price indications for yet another week.  Following the global market trend, Indian imported scrap offers have softened.

Turkey, the most prominent scrap buyer, was mostly silent last week, with only a few bookings made for US-origin material. Many Indian steelmakers and buyers are holding back fresh booking of imported scrap, waiting to see the next round of bookings made by Turkish buyers to get a clearer market direction.

“Most buyers do not want imported material as it is not workable for the time being. Domestic material is better,” said a Chennai-based market source. Also, amid Ramadan holidays, not many suppliers from theUAE were seen actively quoting offers.

Recent deals and offers

• In a recent deal concluded towards mid-week, around 1,500 t of UK/Europe-origin containerised shredded scrap was booked at around $590-595/t CFR Nhava Sheva. India’s ferrous scrap import prices corrected following the global market trend amidst the ongoing Eid holidays.
• A small quantity of South African HMS 1&2 (90:10) was booked at $580-585/t CFR Chennai earlier in the week.

Many deals were concluded for UAE-, Yemen- and Mauritius-origin material last week before the holidays, considering the short distance and cost competitiveness.

Domestic market overview

• Domestic scrap prices continue to decline: Domestic scrap prices remained volatile across markets throughout the week. Western India prices corrected sharply downwards by up to INR 800/t, especially in the Alang market, due to lack of demand for material for induction furnace buyers. The market was mostly inactive earlier in the week, due to Eid holidays.

SteelMint’s assessment for HMS (80:20) was at INR 44,000/tDAP ($572/t) Mumbai, down INR 700/t ($9/t) w-o-w. Prices in Jalna were assessed at INR 44,400/t DAP ($577/t), down by INR 800/t ($10/t) w-o-w.

• Weak buying inquiries continue to weigh on rebar prices: Induction furnace rebar prices witnessed consistent downtrend across markets. Volatile semi-finished steel prices led to lack of buying inquiries and subdued transactions in the spot market as buyers were less active in  procuring material at current price levels. Slowly, and gradually, inventories have increased at mills which forced manufacturers to reduce prices, SteelMint learnt.

Domestic IF rebar (Fe 500) prices stand at INR 63,300/t ($823/t), down by INR 800/t ($10/t) from INR 64,200/t ($834/t) exw-Mumbai.