India: Imported Scrap offers remain stable; buyers cautious

Imported Scrap offers stabilizes after a week rise in price. Currently HMS 1&2 assessed in the range of USD 310-320/MT CFR India.

Imported Scrap offers which moved up around  USD 5-10/MT last week on anticipation that dispatches from Europe/US will slow down on extreme winter conditions , have seen little buying interest from Indian buyers. Current offers for HMS 1&2 are at around USD 310-320/MT, but weak Rupee is making Indian buyers cautious.

An indentor at Mumbai reported, “There is more of talks in the market, but actual buying is not so significant. Current offers for HMS 1&2 from nations like Brazil is easily available at around USD 311-315/MT but offers from South Africa and Europe is not less than USD 315/MT CIF Nhava Sheva.”

Another Scrap trader at Mumbai added, “Currently offers from Middle east are at around USD 315-318 /MT for HMS 1&2, assessing the market it seems like buyers are still in wait and watch mood. We are offering Shredded from Europe at around USD 330-335/MT for January loading.”

Whereas Indentors at South speaks, “Here offers from civilized nations are at around USD 315/MT CIF Chennai. Buyers are directly approaching for USD 300/MT levels as domestic scrap is still cheaper. We are currently offering European Scrap at USD 315/MT.”

Most of the buyers in South look influenced from Scrap offers floating in Vietnam.  Trades for break – bulk at Vietnam are heard at USD 250-260/MT CIF and containerized at around USD 290-300/MT CIF Vietnam.

Indian Billet & Sponge Iron prices fall

This week started with a fall of INR 150-300/MT in Billet and INR 200-300/MT in Sponge offers across India. Market participants believe that production cut by secondary steel manufacturers have resulted a fall in demand for Sponge and Billet demand. Most of the manufacturers blame cheaper imports of re-bar and wire rod from China for this situation. Current offers for imported re-bar and wire rod assessed in the range of USD 450-460/MT CIF India.