India’s imported scrap market remained subdued for yet another week. There was almost no activity seen Indian mills were not willing to accept the current prices owing to the disparity in the rates of domestic substitutes and the landed prices of the imported material.
“The Indian market has slowed down, and is expected to remain like this for the rest of the month. Trade activities may pick up from Aug’21,” said a scrap buyer.
“The Indian market is quiet. Bids have corrected a bit,” said a scrap trader.
Fresh offers for the UK/EU-origin shredded are being quoted at $545-550/tonne (t) CFR Nhava Sheva levels, unchanged w-o-w. But, hardly any trade has been recorded.
Offers for UK HMS are hovering at $515-520/t CFR basis, largely stable w-o-w.
Where the South Asian ferrous scrap market is concerned, most major imported scrap buying countries have stopped their bookings on account of the upcoming Eid holidays.
Domestic scrap market shows mixed sentiments: There were variations in melting scrap prices this week owing to considerable changes in the prices of semi-finished as well as finished steel. SteelMint’s assessment for HMS in western India is at INR 33,200 /t DAP Mumbai, up by INR 200/t w-o-w. The same is at INR 33,000/t DAP for Jalna, up by INR 800/t w-o-w. Spreads may get corrected in the near-term as per market requirements and conditions.
Simultaneously, renewed buying resulted in recent correction in billet prices which also led to improvement in demand for sponge iron. SteelMint’s benchmark sponge P-DRI (FeM 80%) prices moved up by INR 400/t to INR 29,100/t, exw-Raipur.
Rebar market softens
The Induction furnace (IF)-route rebar market remained dull throughout the week. Lack of demand forced most producers to adjust trade prices. Prices in the short term are expected to remain weak, especially in the western region. In other markets, rebar prices will depend on billet price movements, sources said. According to SteelMint’s assessment, IF-grade rebar prices in Mumbai stand at INR 47,200/t exw.
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