Indian Imported Ferrous Scrap Buyers Seek Further Corrections

Imported scrap offers to India have come down by around USD 10-20/MT W-o-W, however buying interest seen around USD 15-20 lesser than present levels.

As per recent conversations with market participants SteelMint learned that, imported ferrous scrap market in India has continued to move down in terms of offer levels this week. Buying activities remain dull owing to an inert mood of buyers and festive holidays for Dussehra. Most of the participants were looking at offers to come down further by USD 10-15/MT.

As per assessment offers for HMS 1&2 (80:20) in containers for Dubai origin stood in the range of USD 290-300/MT, CFR Nhava Sheva down by USD 10-15 than last week’s assessment.

Offers for Shredded scrap also fell in this week for both UK and Europe origins and now assessed in the range of USD 310-320/MT, CFR Nhava Sheva. Last week assessment for Shredded scrap offers from UK stood at USD 335/MT, CFR.

“Some offers for Shredded material heard around USD 310-315/MT but even these offer levels are not workable right now” a trader shared with SteelMint.

The fall in the imported scrap offers in India reflects lowered prices in Turkey market as well as weakening bids from Indian steel mills.

“Currently imported scrap market is witnessing fewer trade activities amid festive holidays in India and is seeking for clarity. Present prices should go even down to be workable. Imported scrap prices heard this week were bit volatile and nothing can be commented on this before reopening in next week.” another market participant shared with SteelMint.

“No fresh bookings confirmed in the bulk cargoes in India however thin trades in containers might have carried out” a west India based scrap trader highlighted.

Domestic scrap offers in major markets in India have also come down slightly and thus price gap between imported scrap and domestic one still continues. This situation is leading buyers to preferred domestic scrap.

Currently, HMS (80:20) in Mumbai is assessed at INR 20,200/MT and that in Chennai is around INR 19,300/MT (Basic prices, GST @ 18% extra).Prices are down by INR 500-600/MT on W-o-W basis.