Imported Scrap offers from Europe remain stable, whereas offers from Middle-East countries corrected slightly this week.
Sluggish demand in finished products has resulted in correction of finished steel prices, which was followed by decline in Ingot as well as Sponge iron prices. This price correction in semi finish & finished is building pressure on Scrap prices too.
Domestic Scrap which had been stable last week at around INR 26,300/MT has now slipped to INR 25,900/MT (Ex-Mumbai). Similarly, imported Scrap offers for HMS 1&2 which had touched USD 400/MT last week is now being offered at around USD 397/MT CFR Mumbai.
“Import volumes were pretty good last month, when Sponge iron prices picked up owing to limited supply of Iron ore in Indian market. However, the falling prices in domestic market have slowed down buying interest for imported scrap,” said an importer based in Mumbai.
As per SteelMint’s assessment, imported scrap prices were trading at a premium level and volume of imports has declined in the month of May as compared to April. 
*Weekly assessment prices & volume
*Price: CFR Mumbai
Imported Scrap offers for HMS 1&2 from Europe remained stable at USD 385-387/MT CFR Mumbai. Indian importers speculated that buying interest in Scrap has slowed down after Indian Billet and Sponge iron prices corrected by INR 500-800/MT W-o-W.
An Exporter based in Poland mentioned, “Our current offers are in the range of USD 386-387/MT CFR Mumbai, but buying in India is not that aggressive what it was last month.”
Whereas, importer based in Ludhiana shared, “Currently, there is abundant stock of Scrap to meet the present need of market as finished demand has dropped down and this is likely to build pressure on imported Scrap offers.”
|
Offers CFR Mumbai |
||
|
Origin |
Grade |
Offers in USD/MT |
|
Europe |
HMS 1&2 |
385-387 |
|
|
HMS 1 |
395 |
|
|
Blue steel |
406 |
|
Middle-East |
HMS 1&2 |
397-400 |
|
|
HMS 1 |
402-405 |
|
South Africa |
HMS 1&2 |
392 |
|
|
HMS 1 |
396 |
|
Offers CFR Chennai |
||
|
Europe |
HMS 1&2 |
395 |
|
|
HMS 1 |
405 |
|
|
Blue Steel |
415 |
Indian Sponge Iron Prices
Indian Sponge iron prices have corrected over INR 500/MT, however Iron ore supply from Odisha still remains a concern for manufactures. NMDC recently raised offers by INR 250-300/MT looking at shortfall in Iron ore supply. JSW and few other midsized steelmakers are opting for imports, anticipating Iron ore supply to remain critical.
Looking at all this scenario, Sponge iron prices will have limited scope to fall from current levels.
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