Imported Scrap Offers to India on Higher Side

Imported scrap offers to India have increased by around USD 2-5/MT due to limited supply in domestic market and decent demand in global market.

Imposition of MIP has activated Indian steel producers. Mills that were shut down or running under capacity have resumed/improved their functioning. Hence, looking at decent demand for scrap, material is heard to have offered at a higher side.

HMS from Europe are heard at an average price of USD 195/MT, CFR India. Ready material offers are even available at USD 200/MT, CFR at Chennai port. While, offers for shredded are assessed at USD 210/MT, CFR India.

“Mills haven’t taken any position last month on the backdrop of uncertainties in MIP announcement. But now after the imposition, production has started in rhythm and people are ready to buy scrap at these levels”, said a Chennai based importer.

While, another manufacturer based in Mumbai shared, “Offers from UK for HMS 80:20 are not found less than USD 190-192/MT and HMS 90:10 at USD 195-200/MT, CFR India. Shredded is available at USD 205-210/MT. Buyers are still cautious while taking buying position.”

Offers from Middle East surged to USD 210-215/MT, CFR India for HMS (25 tonnes loading) and USD 195-200/MT for HMS (23 tonnes loading). While, no offers were heard from Far East (Japan) as currently the domestic market is paying them well. Similarly, limited offers are heard from South Africa owing to ongoing licensing issue at USD 205/MT, CFR India (HMS 25 tonnes loading).

Global views

Buying in Turkey remains decent for HMS 80:20 at around USD 172-175/MT, CFR Turkey from Europe and USD 178-180/MT, CFR Turkey from USA.

Price rise in semi and finished steel in Turkey has created a positive sentiment in market. Scrap suppliers are waiting for the next move from Turkish mills, anticipating some rise in prices.

Source: SteelMint Research