Imported scrap offers to India shot up this week. Latest offers reported from US for Shredded scrap in bulk touched USD 400/MT for Feb’18 shipment. Containerized Shredded scrap offers also hiked by USD 15-20/MT on W-o-W basis.
Following bullish prices in global imported scrap markets, Indian imported scrap offers shoot up recently. As of now most of the buyers are preferring domestic scrap or shifting to DRI /Sponge for steelmaking but amid scarcity of scrap inventories and low availability of domestic scrap, steelmakers are likely to buy imported scrap at rising prices.
Offers for Shredded scrap in containers from USA/UK assessed at USD 375-380/MT, CFR and for Europe origin prices are likely around USD 385-390/MT, CFR Nhava Sheva. Offers have increased by USD 15-20/MT on W-o-W basis as last week offers for Shredded scrap were at USD 360/MT, CFR Nhava Sheva from UK.
Price assessment for HMS 1&2 (80:20) in containers stood at USD 330-335/MT, CFR Nhava Sheva from Dubai while offers are at USD 330/MT and above USD 350 from South America and Australia respectively. Few offers for HMS (80:20) heard at USD 335/MT from UK and at USD 325-330/MT from West Africa for CFR Nhava Sheva. Thus offers slightly increased by USD 5/MT from offer levels in last week.
“Latest containerized imported ferrous scrap offers shot up for India. Shredded scrap offered in bulk cargo was around USD 395-400/MT from US and now it likely that Indian steel mills will have no other choice than to place orders at higher prices for imported scrap. Currently, scrap markets are quite stable and strong but very few and limited offers are available.” – a market participant shared with SteelMint
The price gap between offers for Shredded and HMS (80:20) is increasing sharply from past few weeks.
Domestic scrap prices remained almost stable on W-o-W basis. Currently, HMS (80:20) in Mumbai is assessed at INR 22,700/MT and that in Chennai is around INR 22,800/MT (Basic prices, GST @ 18% extra)
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