Imported Scrap Offers to India Remain Firm Despite Limited Buying

Strong buying in Turkey keeps global scrap prices high; whereas falling steel prices in Indian market keeps importers hesitant.

Imported scrap offers to Indian market continues to remain high although buying interest remains low over falling steel prices in domestic market. Shredded scrap (US/Europe origin) have continued to maintain high levels of USD 205-210/MT, CFR India and HMS 80:20 at USD 190-195/MT, CFR India basis.

Offers from South Africa were rarely heard in market, owing to the scrap supplier’s license renewal issues. However few scrap suppliers having South African HMS grade were offering at USD 205/MT CFR India levels.

Meanwhile scrap offers from Middle East also remained bullish at USD 195/MT for HMS 1&2, USD 210-215/MT for HMS 1 and USD 220-225/MT for Blue Steel, CFR India basis.

Bearish sentiments dominate Indian market

Consecutive price cut by Indian iron ore miners have developed bearish sentiments all around in Indian steel market. Buyers are hesitating in taking any buying position, anticipating further fall in ore prices.

As a result,  expected fall in sponge iron prices may become a threat to imported scrap in near future.

Trade wise

1. HMS scrap offers to Turkey rise to USD 195-200/MT CFR  basis
2. European HMS offers to India at around USD 195/MT
3. Shredded offers at USD 205-210/MT CFR India
4. Australian HMS offers at USD 195/MT CFR India
5. Deal of 20 containers of HMS 1 (European origin) concluded at around USD 195-200/MT levels, CFR Mundra port.