India: Imported scrap offers remain firm, HMS trades improve

Imported scrap offers to India have mostly remained stable against last week, however trades have slightly picked up. Nevertheless, strict lockdown in different regions amid increasing COVID cases has kept trades limited. In addition to it, ongoing Ramadan month has slowed down the global scrap market.

“Market is quiet, probably as Turkish scrap prices are not moving. Turkish mills need some more vessels for late- May shipments. Market participants are of the opinion that prices might rebound soon. We can expect prices to go up after Eid” shared a prominent scrap trader.

Few market sources highlighted that Shredded scrap offers from UK may go up further as freight rates in May are expected to increase.

Recent trades & offers:

• A prominent steel mill booked 1,000t of busheling scrap at $488-490/t CFR basis, sources have shared to SteelMint
• Western India based largest steel producer has bought UAE origin 2,000t of HMS 1&2 at $440/t CFR basis
• Shredded offers remain mostly firm at $460-465/t CFR Nhava Sheva basis.
• HMS offers from UK/EU origin HMS 1&2 (80:20) are now cited at $435-440/t CFR Nhava Sheva levels
• UAE origin HMS1 is now offered at $440-445/t CFR Nhava Sheva basis.
• In another trade heard this week, 1,500 t Europe origin busheling scrap has been sold at $470/t CFR Chennai basis

Domestic scrap prices rally: Melting scrap prices gained by up to INR 1,200/t w-o-w basis on healthy transactions in substitute (sponge iron) products and semi-finished steel. Sponge prices have increased on the back of hike in iron ore prices. Scrap prices in the near term are expected to remain supportive amid strengthening raw material price movement, trade participants reported to SteelMint. SteelMint’s assessment for HMS in Western India is at INR 33,300/t DAP Mumbai, up by INR 1,200/t w-o-w, and the same it is INR 32,000/t DAP level for Jalna, up by INR 300/t w-o-w.

SteelMint’s benchmark sponge iron (P-DRI) prices hit an all-time high to INR 30,900/t, exw Raipur, Central India – touching the highest level since the data maintained with SteelMint from Aug 2012. The prices continued to rise on account of higher raw material (Iron ore & pellet) price & hike in billet offers.