Following the global scrap price trends, Indian imported scrap offers have fallen significantly this week. Despite a decline in offers, limited trade was seen throughout the week. Traders are looking to sell distressed cargo at lower levels.
“No major deals have been heard in India. It seems unless the Covid-led lockdown restrictions ease and finished steel sales improve, the imported scrap market may continue to see limited trade,” a market source said.
“Most of the industry participants have adopted a ‘wait-and-watch’ policy and are waiting for prices to stabilise,” another prominent scrap trader said.
- SteelMint’s assessment for UK/Europe-origin containerised shredded scrap stands at $505-510/tonne (t) CFR Nhava Sheva, decreasing significantly by over $30/t week-on-week (w-o-w).
- High seas offers for UAE-origin HMS 1 are now at $465/t levels and HMS 1&2 (80:20) at $455-460/t CFR levels.
- Few unconfirmed small deals for Middle-East-origin HMS 1&2 (80:20) were heard at $450-455/t levels recently, sources have confirmed.
Domestic scrap prices further down:
Domestic scrap prices saw a downward correction by up to INR 2,200/t on 28 May’21 across major Indian markets. As per sources, scrap prices have decreased due to bid-offer disparities, declining sponge iron prices, limited trade in semi-finished and finished steel, amidst build-up in steel stocks.
SteelMint’s assessment for HMS in western India is at INR 34,200/t DAP Mumbai, falling by INR 1,800/t w-o-w, and the same is at INR 33,700/t DAP for Jalna, down sharply by INR 2,200/t w-o-w.
Indian IF-grade rebar prices edge lower:
Prices of rebar produced via the induction furnace (IF) route continued to slide this week by up to INR 1,800-2,000/t except in a few specific markets in southern India, as per SteelMint reports. Limited buying inquiries and a free-fall in billet prices pushed manufacturers to reduce their offers. However, sellers kept their offers unchanged, while extending trade discounts, depending on demand in the spot market. IF grade rebar prices in the near term are expected to remain under pressure, as per sources.
According to SteelMint’s assessment, induction furnace (IF) grade rebar prices in Mumbai stand at INR 47,600/t exw, down significantly by INR 1,700/t w-o-w.
Imported scrap prices decline in other south Asian markets:
A leading Bangladeshi steel mill has booked two bulk US-origin scrap cargoes for July’21 shipments recently, SteelMint confirmed from sources. The cargoes comprised a mix of shredded scrap and HMS, with the shredded material getting booked at around $535-540/t, CFR Chittagong. Prices have corrected by $20-25/t against offers heard earlier this week. Bangladesh-based mills had been bidding on the lower side for bulk cargoes for the past couple of weeks and were actively booking containers due to higher bulk offers.
Import ferrous scrap prices in Pakistan have dropped significantly against the beginning of this week on limited trades reported, as per SteelMint. Only a few deals were heard for around 2,000-2,500 t of containerised shredded scrap transacted at $510/t, CFR Port Qasim. UK-origin containerised shredded scrap offers are now at $505-510/t, CFR. SteelMint’s bi-weekly price assessment for shredded scrap stood at $506/t, CFR Port Qasim on 27 May, down by $10/t against the previous assessment on 25 May’21.
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