Imported scrap offers to India continued move down by USD 5-7/MT on W-o-W. However, market turned stagnant with limited deals and buyers are waiting for more clarity on global market.
In recent conversations with market participants, SteelMint learned that Indian importers remained dull with very limited quantity deals heard for scrap imports this week. Yesterday INR hit record low at 69 against USD pushing imports to turn costly. Cheaper availability of domestic scrap, sharp currency devaluation of Indian Rupee and weakened steel prices in domestic market kept importers bounded to book only limited quantities while many of the buyers remain silent again this week.
Price assessment of UK and USA origin containerized Shredded scrap fell down at USD 365-370/MT, CFR levels. However, hardly very few offers are available in the market as buying interest remains dull. Shredded offers in bulk vessels still heard at around USD 375-380/MT levels.
On W-o-W basis, HMS 1&2 offers have moved down by USD 5/MT successively for third week. Offers from UAE for HMS 1&2 (80:20) heard at USD 335-340/MT and HMS 1 assessed at USD 340-345/MT, CFR.
West African HMS is being offered in the range of USD 320-325/MT, CFR Nhava Sheva depending on quality of scrap in containers and loading ports and European HMS assessment stands in the range of USD 325-330/MT, CFR. Offers for turning scrap from UK and Europe origin stand at USD 310-320/MT, CFR.
A bulk scrap vessel is reported at Kandla Port – According to SteelMint’s vessel line up data, a bulk scrap vessel is expected to arrive at Kandla port today. According to sources, the vessel comprises of around 26,900 MT ferrous scrap booked from Australia. The importer is likely to stock it and sell later.
“Indian market remains stagnant for yet another week for scrap imports as domestic scrap prices are very cheap over imported. It is now expected that prices are likely to remain almost at same levels at least for next 10 days period. Everyone is waiting for more clarity in the global market” shared a trade source.
Few participants indicated that importers may resume bookings actively only in the second half of August.
Indian domestic scrap prices stable this week – After witnessing sharp fall in local scrap prices since past few weeks, domestic scrap prices in India have stabilized for major regions on the weekly comparison. Although for few regions prices continued to drop down by INR 500-600/MT on W-o-W. Currently, HMS (80:20) basic prices assessed at INR 24,400-24,500/MT (stable W-o-W) in Mumbai, while INR 22,500-22,700/MT (down INR 900 W-o-W) in Chennai, GST @ 18% extra.
Ship breaking market collapsed with sharp fall in rebar and semi finish steel prices in India. Alang buyers remain reluctant to offer any new tonnage, expecting for more clarity in upcoming days. Depreciation of Rupee worried Indian buyers further in ship recycling market. However, India remains second preferable market after Bangladesh for ship cutter while Pakistan market remains inert with huge currency devaluation. Steel plate’s prices have moved down by INR 700-800/MT W-o-W again in Alang region. Ship cutting prices moved down by USD 5-10/MT W-o-W basis and assessed at USD 410/LDT for general dry bulk cargo; at USD 440/LDT for containers and at USD 430/LDT for tankers on CNF India basis respectively.
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