India: Imported scrap market continues to remain subdued

The imported scrap market in India remained quiet this week owing to disparities in bids and offers. No major bookings were heard throughout the week. Offers remained at the higher levels, unchanged against last week.

Notably, the north Indian market saw negative  sentiments on limited demand for scrap, as the electricity crisis remained a major issue. Hence, steel production dropped drastically.

However, other major steel producers were looking for domestic scrap, as imported scrap were less viable, said a market player.

Recent offers:

• Fresh offers for UK/EU-origin shredded are being quoted at $540-545/tonne (t) CFR levels, largely stable w-o-w.
• HMS offers from the UAE stand at $485-490/t CFR basis.

“July  will be like this. By mid-Aug, market activity may gain some momentum. However, with increased buying interest from China, trade may pick up,” said a market insider.

Domestic scrap prices volatile:

Melting scrap prices remained volatile this week, with prices falling by around INR 900/t in some locations while rising in a few other scrap markets due to a slight uptick in semi-finished steel prices.

Near-term price expectations remain unclear owing to the prevailing uncertainty shrouding steel prices, trade sources informed. SteelMint’s assessment for HMS in western India is at INR 33,000/t DAP Mumbai, down by INR 100/t w-o-w, and INR 32,200/t DAP for Jalna, down by INR 300/t w-o-w.

In the meantime, sponge iron offers remained firm despite limited bids. A slight price correction in sponge iron prices is expected due to falling billet prices. SteelMint’s benchmark sponge P-DRI (FeM 80%) prices dropped further by INR 400/t to INR 28,700/t, exw-Raipur, on 9 Jul’21.

Rebar prices range-bound:

The Indian secondary rebar market observed moderate trading and buying enquiries. Manufacturers are adjusting prices depending upon the requirements. However, minor fluctuations in semi-finished steel prices and improvement in rebar trade have been seen, varying from region to region.

According to SteelMint’s assessment, induction furnace (IF) grade rebar prices in Mumbai stand at INR 46,100/t exw, up by INR 900/t w-o-w.