Imported Scrap Offers to India Inch Up USD 8-10/t, Buyers Absent

Containerized Imported scrap offer to India continue to inch up this week by USD 8-10/MT. Last week prices it increased up to USD 10/MT.

Fresh offer of HMS 80:20 scrap assessed at USD 265-270/MT CFR India from UK origin. Shredded from US are assessed at USD 295-300/MT CFR.

“Global scrap sentiments are positive but India’s buying at this level is absent due to increase price gap compared to domestic scrap and sponge iron”. commented by an UK based scarp supplier.

Price gap of domestic scrap widened: Domestic HMS 80:20 scrap in Mumbai are assessed at INR 19,500-20,000/MT (ED/VAT Extra) whereas landed cost of containerized imported scrap to Wada manufacturing units are at INR 20,800-21,500/MT (at USD 260-265/MT).

“Domestic scrap supply is limited but compare to imported scrap its more viable.” said Mumbai based manufacturer. He added, “Sponge iron mix is also increasing, last week we booked Sponge iron lumps Fe 80% from Bellary at INR 15,000 Ex-Works, that is landed to Mumbai equivalent to INR 17,000/MT (USD 250/MT)” .

Middle East Offer expensive: Dubai HMS scrap (25MT container load) offer assessed at USD 275-280/MT CFR. “Dubai last vessel booked at USD 250-260/t, but present offers expensive” said another Manufacturer located in Mumbai.”
 
“Dubai buying from Pakistan improved significantly from last few weeks. So offer to India may not lower immediately” said a Dubai based supplier. HMS CFR Pakistan assessed at USD 280/MT.
 
India scrap delivery for Feb and March’17 may again slow down looking at the low domestic scrap and sponge price. Buyers interest level may resume if domestic steel price inch further by INR 1,000/MT there is  anticipation by manufacturer looking at the positive global steel market.
 
India is second largest scrap imported country followed by Turkey. Turkey import 17.7 MnT scrap whereas India import 5.4 MnT in CY2016.

Global Imported Scrap Offers in Week 9:

Source: SteelMint Research
Prices in USD/MT