Indian Scrap Market Observes Buying As Prices Show Correction

Indian Scrap Market has started to show buying intent at lower scrap prices.

Indian scrap import offers have dropped by USD 3/MT (W-o-W) . Buying interest has started to be better. Market sources say that there are enquiries in the market. Especially from special steel makers.

According to Trader based in Mumbai, “There is still limited buyers at the decreased prices. The prices have decreased M-o-M from USD 315/MT to USD 305/MT CFR India (Nhava Sheva). and there is no trade reported at more than USD 290-295/MT levels.”

The correction in prices are largely influenced by the downfall of prices in Turkey. Which was reported as USD 262/MT. Offers in India according to sources are at USD 295/MT HMS 1&2 (80:20) and Shredded at USD 302/MT. Almost same known for Pakistan at USD 280/MT and Bangladesh at USD 298/MT.

Last deal for HMS 80:20 from US was reported at around USD 261/MT, whereas shredded being concluded at USD 266/MT and bonus scrap at around USD 270-271/MT CFR Turkey.

Prices are falling inline in Turkey with declining iron ore prices in Chinese market, which is a key ingredient for steel-making. Notably spot iron ore prices have corrected by USD 11/MT (W-o-W) basis, hitting two month low.

Falling Prices may Bring Indian Buyers Back

According to market reports, “buying may stay active if the prices continue to fall or are stable at the prices as the stock levels are decreasing at almost all over the globe including India”