India: Imported Scrap offers up by USD 5-10/MT

Scrap offers uptick in Indian market mainly due to coming winters in US & Europe, which has slowed down Scrap exports.

Speaking to Scrap dealers, it is inferred that offers have moved up by USD 5-10 /MT from Middle East and Europe. Current offers for HMS 1&2 stand at USD 315-320/MT CIF India from Middle East, South Africa and Europe.

Steel mills confirmed that prices have risen but buying interest still remains subdued. Most of them have booked the material at previous levels and no aggressive stocking being done at these prices.

“We are receiving offers from Middle East at USD 315/MT CIF Mumbai and last trade heard to settle at around USD 305/MT CIF Mumbai. Some trades were even reported at USD 310-311/MT CIF. South African suppliers have also raised offers for HMS 1&2 to USD 315-320/MT CIF,” said an induction furnace owner based in Mumbai.

Another importer mentioned that Indian mills do not have many options as US & Europe have reduced Scrap exports due to extreme winters. In addition, quantity will fall further once Christmas holidays start.

Whereas an indentor based in Chennai reported to offer HMS 1&2 from Europe at around USD 315 to 318 MT, but buyers are seeking cargo at around USD 305/MT levels; quoting example of previous trade of 1,000 MT settled at USD 303/MT CFR Chennai of Poland origin.

HMS offers from South Africa is currently at USD 315-320/MT CFR Chennai. Whereas, premium HMS from Australia is heard at around USD 325/MT CFR Chennai. Indian domestic Scrap prices have stabilized in the range of INR 21,000 to 23,000/MT (excluding excise).