India Imported Scrap Trade log Week 49

Imported scrap offers reported down by USD 5-10/MT to Indian market amid low trade activities post demonetization. Market participants mention that buyers are ready to sell off old booked ready stock cargoes due to financial liquidity.

“We are stocking all ready stock HMS 80:20 offered to us. We are bullish on demand and price for Jan’17. West India market will face shortage due to low booking and high international price. ” shared a Mumbai based manufacturer. He also mentioned that he has purchased 2,000 MT, will further buy 1,500-2,000 MT.

As per estimate ready stock HMS offer are approx 10,000-15,000 MT in current month.

“Interest is extremely low from mild steel manufacturers as manufacturer curtails production and cheaper availability of scrap or sponge iron in domestic.” stated a scrap trader.

“Asia market including India remains quiet and expected till Jan’17 as domestic steel prices are low comparing to international indexes. India scrap and sponge availability are also high” stated indenter located in Mumbai.

Trade dynamics:

Ready stock HMS 80:20 cargos booked last month selling at USD 210-225/MT ex Nhava sheva. Limited stock of shredded grade deal heard at USD 230-240/MT.

Fresh offers of US shredded are at USD 270-275/MT with limited sellers as US domestic scrap prices inched up by USD 10-15/MT W-o-W. Present US FOB .

Shredded offers from UK/Europe are at USD 265-270/MT and HMS 80:20 is at USD 240-250/MT CIF Nhava Sheva, India.

Dubai heavy melting trade of 25MT container load heard at USD 240-245/MT.

India Sponge Iron CDRI FeM 80% (lumps) are at INR 16,500-17,000/MT (USD 240-245/MT) FOR to West based furnaces India.

Source: SteelMint Research