Scrap imports to India have moved down consecutively in last three months amid price rally in global market. Thus this has resulted in lowered availability of scrap in Indian market leading to rise in domestic prices.
As per vessel-line up data maintained by SteelMint, India’s last bulk ferrous scrap imports was recorded during Aug’19 for 35,200 MT, however after that there were no bulk import shipments seen arriving at Indian ports.
As per major scrap importer, deals for 3 bulk scrap vessels were concluded at Oct’19 in western India and deals were reported at an avg. price of USD 293/MT, CFR (Shredded/Bonus) and rest 2 deals were concluded at USD 260 & 270/MT, CFR India.
Meanwhile, the govt data, showed drop in India’s overall ferrous scrap imports and recorded at 3,18,921 MT in Oct’19; drop by about 35% compared with Aug’19 at 4,90,141 MT & about 12% on a monthly basis as against 360,755 MT in Sep’19.
The participants mentioned following rally in scrap prices globally, the stockiest are taking advantage amidst limited availability and increasing offers from buyer to buyer.
The current offers in major scrap consuming markets are hovering at INR 20,500-20,700/MT ex-Jalna, INR 21,200-21,400/MT ex-Mumbai, INR 21,000-21,500/MT ex-Chennai & INR 22,400-22,500/MT ex-Ahmedabad, excluding of GST. These prices have increased by around INR 1,000/MT in Nov’19 M-o-M & about INR 600-700/MT particularly in Chennai market in Dec’19 and west region market observed stability.
In context to imported scrap, the offers of containerized Dubai origin HMS 1&2 stood at around USD 275/MT, CFR Nhava Sheva last week & Shredded at USD 290-295/MT CFR India, up by USD 10-12/MT during Nov-Dec’19.
Few containerized scrap (shredded) from Europe heard to be concluded at USD 300/MT in south region & Turning scrap offerings at USD 265/MT level from Germany but not heard for any deal confirmation.
Participants believe that, Indian domestic scrap prices to rise further following constant hike in scrap prices in global market and being a net scrap importer Indian domestic melting scrap prices shouldn’t get major correction in near term due to tight availability amid winters in Europe & USA.
However, Middle East origin scrap prices might get adjusted as per Indian finish steel demand & supply movement being considered geographic location and generally takes lesser transit time to reach west & south regions in India.
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