Scrap importers looked hopeful about rise in demand and uptick in Chinese billet export offers.
Imported scrap market in India finds stability in offers and remained unchanged in the opening of week 31. SteelMint assessed that offers for HMS 80:20 remained in the range of USD 220-225/MT and Shredded (ISRI 211) at USD 245/MT, CFR India.
Scrap prices have slowly found stability in global market, on the back of rising billet offers in China. The export offers for Chinese billet have gone up by USD 10-15/MT in last few weeks to USD 295-300/MT, FoB China.
Whereas, if we talk about India, distress selling seemed to be vanishing from the market, with emerging buying talks (rumors) in the local market.
Scrap suppliers look confident about price improving in the coming days. An importer in the west coast shared, “It’s been more than 1-1.5 months; no major import deals are closed. Manufacturers are running short of raw material and can’t wait for another 30-45 days until new vessels come. Buying is likely to improve soon.”
“No seller is ready to offer shredded (ISRI 211) below USD 245/MT, CFR India, anticipating rise in demand in a short while” shared an importer at Kandla Port.
However, India’s southern market for scrap import still remains quiet amid cheaper availability of domestic scrap. Imported scrap offers are heard at USD 225/MT for HMS 80:20/ 1&2, USD 245/MT for shredded from Europe origin, and USD 230-235/MT for HMS 1 (25 tonne loading) and USD 245/MT for plate and structural from South Africa, CFR Chennai Port.
An importer from Chennai shared, “Currently most of the demand here at Chennai is fullfilled by local scrap coming from automobile industry. Hence, manufacturers are not willing to take risk of booking imported scrap.”
Similarly a buyer from Chennai shared, “Why take risk of purchasing imported scrap (at such an uncertain phase of market) when local melting scrap is easily available at INR 16,000/MT ex-yard and INR 18,500/MT delivered (including ED).”
Outlook
Looking at the market’s confidence, it seems buying for scrap may improve in near future, but continuous price corrections by primary manufacturers in Pig iron prices can not be ignored.
Global Scrap Offers, CFR India basis
| Particular | Size/Grade | Prices |
| Europe/US | HMS(80:20) | $220-225 |
| Shredded | $245-250 | |
| Middle East | HMS-1&2 | $215 |
| HMS-1 | $225 | |
| S Africa | HMS-1 | $230 |
| Plate & Structural | $245 |
Source: SteelMint Research
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