Imported Scrap Offers to India Move Up Despite Low Buying Interest

1. Imported scrap offers moved up to India; buying low
2. Global scrap offers rise by USD 40-50/MT in last one month
3. Chinese billet export offers stable
4. Indian sponge prices may find support

Imported scrap offers flowing to Indian market have moved up owing to rising global scrap prices, which gained by about USD 40-50/MT in last one month. Global prices rose sharply post Chinese manufacturers increased their billet export offers due to improved demand in domestic market and low inventories.

Premium shredded scrap offers from Europe were assessed at around USD 240/MT, CFR Nhava Sheva (India). However, no deals were heard to be concluded at these levels. Indian importers remain hesitant to take position for imported cargo. Rather, they prefer domestic scrap and DRI. Last deal was heard to be settled at USD 225-230/MT, CFR Nhava Sheva.

HMS 80:20 (25 tonnes) offers from Middle East are assessed at around USD 230/MT, CFR Nhava Sheva and from Europe at around USD 210-220/MT, CFR Nhava Sheva.

Suppliers expect futher price rise

Scrap suppliers expect that prices may go up further in coming weeks owing to strong buying from Turkey and Vietnam.

“Prices may go up further in coming week owing to higher billet offers from China and CIS nations. Mills are preferring scrap over billet, which will keep scrap demand high”, said a scrap supplier based in Singapore.

It is to be noted that Vietnam government has increased import duty on billet and rebar this month, which has increased scrap demand significantly in the country.

Indian sponge iron prices likely to remain firm

Indian sponge iron prices may remain firm as domestic mills prefer sponge iron over scrap. Sponge iron contributes about 25% of India’s crude steel production, whereas scrap contributes around 18%.

Trade-wise

1. Shredded scrap offers at around USD 240/MT, CFR Nhava Sheva; buying remains weak.
2. Japanese busheling shredded scrap offers are assessed at USD 255/MT, CFR Nhava Sheva. However, buyers are seeking discount of USD 15-20/MT.
3. Shredded (1,000 MT) sold to Bangladesh at USD 240/MT, CFR.
4. 2,000 MT HMS sold to Pakistan at around USD 232/MT, CFR basis.
5. HMS offers from Australia are assessed at USD 220/MT, CFR India.

Ferrous Scrap offers as on Week 14 (28 Mar-03 Apr)

Source: SteelMint Research