India: Imported HMS scrap trade improves following recovery in steel prices

Indian imported HMS scrap trade picked up this week considering the uptrend in global scrap prices and active Turkish bulk cargo bookings. However, deals for shredded scrap continued to remain low on higher bids from the neighbouring markets, Pakistan and Bangladesh.

Fresh offers –

• Indications for UK-origin shredded are being heard at $540-545/t CFR. Buyers are not interested in booking the material at a higher price, SteelMint understands.
• Fresh offers for Dubai-origin HMS 1&2 (80:20) and HMS 1 stand at $470/t and $475-480/t CFR Nhava Sheva respectively, up by $10/t w-o-w.
• Around 7,000 t of UAE-origin HMS 1&2 (80:20) was booked by Western India-based mills on high seas at $435-455/t CFR basis, earlier in the week.
• Around 4,500 t of HMS 1&2 (80:20) from South Africa has been booked at $475/t CFR basis.

Factors supporting scrap import prices into India –

1. Turkish mills resume active bookings: Mills booked around six deep sea scrap cargoes after remaining silent last week. A black sea region mill booked a cargo comprising 22,500 t of HMS 1&2 (80:20), 7,500 t of PNS and HMS 1, 7,500 t of shredded, and 2,500 t of new cutting material at an average price of $465/t CFR Turkey. Another cargo containing HMS (80:20) was booked at $463/t and shredded at $483/t CFR by a Mediterranean region-based mill.
2. Active deals in neighbouring countries: Suppliers are active in trading in the neighbouring markets like Pakistan and Bangladesh as buyers there are ready to pay high prices, especially for shredded material. SteelMint’s assessment for shredded scrap import prices into Pakistan stands at $543/t CFR, up $10/t on a w-o-w basis.

• India’s domestic scrap prices largely stable: Amid limited transactions in the finished steel segment, SteelMint’s assessment for HMS (80:20) remained unchanged w-o-w at INR 36,400/t ($490/t) DAP Mumbai while prices in Jalna were assessed at INR 36,500/t DAP ($491/t), up by INR 500/t w-o-w.
• Sponge iron trades pick up: Sponge prices stayed strong on rise in billet offers amidst balanced supply-demand with a few kilns going under maintenance shutdown. About 3,000 t of P-DRI (FeM 79-80%) deals were confirmed at INR 30,300-30,500/t on exw and DAP Raipur basis, yesterday. Sponge iron P-DRI (FeM 80%) prices rose by INR 250/t w-o-w to INR 31,200/t ($177/t) exw-Raipur. Meanwhile, billet prices increased by INR 300/t w-o-w to INR 43,900/t ($247/t) exw-Raipur.
• IF-grade rebar prices up: Moderate buying inquiries and transactions for rebar steel in most of the markets prompted manufacturers to increase prices on the week. Prices increased by INR 200/t w-o-w to INR 50,800/t ($683/t) exw-Mumbai.