India: Imported scrap market subdued amid falling steel prices, market uncertainty

India’s imported scrap trade activities remained slow throughout the week. However, offers inched up on d-o-d basis today after witnessing a decline on global cues. Steel mills and buyers opted to wait and watch due to market uncertainty post-duty structure changes announced by the Indian government last week.

Secondary mills have lowered steel production awaiting clarity in market conditions.

Recent offers and deals

• Fresh shredded offers were at $515/t CFR NHSV level, down by $15-20/t levels w-o-w. However, buyers did not show interest at this level. Buyers’ price ideas were at $508-510/t CFR levels. “Buyers are bidding at very low levels, which suppliers cannot afford,” said another source.
• Dubai-origin HMS1 scrap price indications were heard at around $475/t CFR NHSV.
• West African HMS was being quoted at $460-465/t CFR Chennai basis. However, no significant deals were recorded.

“Sellers were panicking earlier in the week and tried to sell as much as possible at the current rates as prices might go down further,” said a scrap trader. Buyers bid at the lowest level but sellers were not ready to sell any cargo at lower prices.

Domestic scrap prices weaken on limited steel trade

Domestic scrap prices continued to head southward in most parts of India due to limited steel trade. Declining raw material (sponge iron) and semi-finished prices induced scrap buyers to lower their bids. SteelMint’s assessment for HMS (80:20) stood at INR 37,300/t DAP ($480/t) Mumbai, down INR 5,400/t ($70/t) w-o-w.

Lack of bulk trade weighs on rebar market

The induction furnace rebar market saw prices correcting across almost all regions. In today’s trading, semi-finished steel prices increased in key markets of the northern region but not much impact was observed in rebar trade volumes except only a slight improvement in trade in some markets. Manufacturers offered tradable discounts as per buying inquiries.

Domestic IF rebar (Fe 500) prices stand at INR 55,000/t ($709/t), registering a further sharp fall by INR 3,500/t ($45/t) from INR 58,500/t ($754/t) exw-Mumbai.