With a decline in Turkey’s imported scrap prices, trade inquiries in India have witnessed slight improvement. Notably, imported scrap prices into Turkey have come down by $5-10/tonne (t) this week after trade resumed post-the Eid holidays.
“The Indian market scenario is still not good at present. Buyers are likely to return to the market before 15 Aug’21 as now they have limited stock left with their mills. Additionally, another raw material substitute like sponge iron production has also come down,” a source told SteelMint.
Recent offers/trades:
- Fresh offers for shredded are being offered at $530-535/t CFR levels. However, no firm trades were reported as suppliers remained active in selling in Pakistan on better price acceptability of $542-543/t CFR Port Qasim levels.
- A Gujarat-based buyer booked HMS from Africa at $465-470/t CFR Mundra
- A decent quantity of US HMS has been sold at $475/t CFR Nhava Sheva levels.
- HMS 1&2 from the UK are being offered at $485-490/t CFR levels Dubai, while HMS 1 from the UAE is being quoted at $485-490/t CFR levels.
It is anticipated that the imported scrap trade would get some momentum in the next two weeks. Meanwhile, a few market participants are waiting for prices to come down for Aug shipments.
A bulk scrap vessel carrying around 23,000 t of HMS 1&2 (80:20) from the US is expected to arrive at Chennai Port in the first week of Aug’21, according to the vessel line-up data maintained with SteelMint.
Indian scrap prices up on improved steel market sentiments: Melting scrap prices witnessed a rise across markets. Prices jumped due to improving sponge iron, semi-finished, and finished steel prices amid inadequate supply and a slight correction noticed especially in the northern region. Near-term prices may remain supported without the likelihood of any major change, trade sources told SteelMint.
SteelMint’s assessment for HMS in western India is at INR 35,700/t DAP Mumbai, up by INR 1,800/t w-o-w. Similarly, prices for Jalna are at INR 35,500/t DAP, up by INR 1,400/t w-o-w.
Moreover, active demand and rising steel billet prices amidst a slight supply crunch continue to support sponge iron prices. SteelMint’s benchmark sponge P-DRI (FeM 80%) prices increased further by INR 600/t to INR 30,300/t, exw-Raipur on a weekly basis.
Rebar prices up on high raw material prices: All the major Indian markets are witnessing increasing costs of sponge iron and melting scrap as well as a rise in semi-finished steel prices. However, trading activity and buying inquiries varied from region to region. Prices might see slight fluctuations, depending on billet price movements. As per SteelMint’s assessment, induction furnace (IF) grade rebar prices in Mumbai stand at INR 48,700/t exw, up by INR 1,000/t w-o-w.
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