Imported scrap offers have continued to climb this week with offers edging close to 2-years high. Similar price levels were seen in Feb’19. However, Indian buyers are less active in the market on account of Diwali festival holidays and steep hike in offers, traders highlighted. SteelMint’s assessment for Shredded scrap in containers of UK/EU origin stands at $340/t CFR Nhava Sheva, moving up significantly by $15 w-o-w.
Market participants are hopeful of resumption of trades after the Diwali holidays.
Confirmed trades-
- Few deals have been concluded for HMS 1 from Dubai at around $320-330/t CFR level in the last couple of days
- UK origin HMS 1&2 has been sold at $335/t level, while fresh offers are now up by $5 to $340/t CFR level.
- A major Indian steel mill has booked 5,000 t of imported scrap early this week, sources have reported to SteelMint. The cargo comprises, 2,000 t of MS shredded scrap at $335-340/t CFR Vizag and 3,000 t of busheling bundle at $355/t CFR Vizag basis. Cargo has been booked from Australia, New Zealand and UK.
Domestic steel prices surge on higher raw material costs-
- Tight scrap availability and higher freight charges due to shortage of containers have lifted imported scrap prices
- Domestic steel scrap prices in key markets have strengthened further despite sufficient offers. Current trade reference prices were assessed at INR 25,300/t to Jalna & INR 24,900/t to Chennai (DAP).
- Indian billet prices are edging close to 2-years high with SteelMint’s benchmark index for Raipur billet stands at INR 34,100/t exw Raipur
- Sponge iron trades have remained supported despite price rally. SteelMint’s benchmark price assessment of C-DRI stands at INR 25,000/t exw raipur, up by INR 1,200/t w-o-w
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