Imported Scrap offers from Europe at USD 385/MT CFR India

Imported Scrap offers remain unchanged.  Buying has been conservative from Indian importers despite of the Supreme Court’s stay order on Odisha mines.

While talking to few Indian Scrap traders & importers, SteelMint assessed that the Scrap prices are stable. Buying from western India is same as before, with no change in buying frequency and volume.

“The most interesting thing to watch after the Supreme Court’s interim order on Odisha Iron ore mining was demand from eastern India as it would result into scarcity of raw material and increase Scrap import to India. But surprisingly, we could not find any noticeable demand coming up from eastern India,” said an importer based in Mumbai.

Offers from Europe remain unchanged taking 2 months of delivery time. HMS 80:20 Scrap is being offered at around USD 385/MT, whereas Plates & Structural (P&S) is being catered at an offer price of USD 408-410/MT CFR Mumbai.

Adding to above offers, shredded Scrap from Europe & US are in the range of USD 410-415/MT CFR Nhava Seva and USD 420-425/MT CFR Chennai.

Offers from Middle East witnessed slight improvement of USD 2-5/MT. HMS 1&2 are currently offered at USD 395-400/MT and HMS-1 at around USD 410-412/MT CFR Mumbai.

Shredded from Middle East are being offered at premium prices of USD 420-425/MT which could be easily negotiated to level of USD 418/MT CFR Mumbai.

However, market participants are anticipating that buying may further pick up next month when Sponge manufacturers cut down their production on rising Iron ore and Pellet prices.

“We expect Scrap demand will pick up in coming weeks. Sponge manufacturers cannot operate at higher cost. Above that appreciating INR will support Scrap demand,” said a Scrap importer based in western region of India.