India’s imported scrap market remained quiet for another week. Buyers have adopted a wait and watch approach due to unstable prices. Due to the continued hike in imported scrap, the domestic market remained less supportive. Imported scrap offers to India have moved up by $10-20 on a weekly basis. SteelMint’s assessment for Shredded scrap in containers of UK/EU origin stands at $483/t CFR Nhava Sheva, moving up by $5 w-o-w.
In addition to it, Indian market is waiting for upcoming budget 2021-22, which is likely to be presented on 1st Feb’21 and is expected to be more encouraging to manufacturing, infrastructure, and steel industry, SteelMint learnt from its sources.
“People have not booked since long and major supplier countries are offering at high levels due to domestic demand in those countries”, shared a prominent scrap trader.
Market insiders are expecting that from next week onwards market would see some trading activities as buyers had delayed their buying in the anticipation of price correction.
Turkey’s scrap buyers have resumed their deep-sea bulk bookings this week, with prices that are more or less stable on a weekly basis. European and USA suppliers are sending material to Turkey due to the high price, highlighted another source.
Recent deals and offers-
- Booking of European origin HMS 1 were reported this week at $470/t CFR Chennai basis.
- A prominent Indian steelmaker has booked a containerised 1000 t of busheling bundle scrap at $495/t CFR Vizag basis.
- Current offers for UK/EU origin shredded are at $480-490/t CFR levels, however, no firm buying interest was heard at these levels.
India bulk imported scrap imports drop 16% y-o-y in CY’20- Indian bulk scrap imports witnessed a sharp drop of 16% y-o-y, as per vessel line up data maintained with SteelMint. India imported around 246,070 t ferrous scrap in bulk in CY’20, as compared to 291,590 t in CY’19. Preference to domestic scrap and sponge iron amid cost-effectiveness have lowered imports.
Domestic scrap prices correct downwards– Domestic scrap prices witnessed a correction by up to INR 800/t in most of the regions owing to limited trades. Scrap prices in western India may decline slightly, trade associates reported to SteelMint. SteelMint’s assessment for HMS in Western India stands at INR 29,100/t DAP Jalna, down by INR 800 w-o-w.
SteelMint assessment for Chennai stands at INR 32,500/t DAP Chennai level, up by INR 500 w-o-w. Supply shortages have led to an increase of INR 500 in Chennai on a weekly basis.
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