Global scrap prices have maintained its momentum northwards. Following the global price trends, Indian imported scrap prices too, registered a hike of $10 in recently concluded trades this week. The trade has been witnessed after a gap of a couple of weeks. Meanwhile, trades in Pakistan continued to happen at increased offers, SteelMint learnt from reliable sources.
Imported scrap prices in Turkey have moved up by $8/t in a deal concluded by Baltic origin, credible sources have confirmed to SteelMint. A Mediterranean region-based steel mill has booked a mixed cargo comprising 23,500t HMS (80:20) at $440/t CFR Turkey basis. In another deal heard, East Marmara region-based mill booked a cargo comprising of HMS (80:20) and bonus. The booked cargo is likely to be shipped in the mid of June.
“Very few suppliers are active in the markets and yards are holding back offers on expectations of further price hike in the coming days”, shared a trade source.
Recent trades & offers:
- Containerised shredded scrap deals have been concluded at $470/t CFR Nhava Sheva. Fresh offers in containers have moved up significantly by $10/t to $480-485/t CFR levels w-o-w
- Offers for Dubai origin HMS 1 in containers are at $450/t CFR
- HMS from UK is now being offered at $450-455/t CFR levels.
Domestic scrap prices rise on supply tightness: Melting prices remain range-bound in near term. Trade participants remained cautious amidst uncertainty in future market outlook and inadequate future bookings due to ongoing lockdown restrictions. SteelMint’s assessment for HMS in Western India is at INR 34,300/t DAP Mumbai, up by INR 800/t, and the same is INR 34,400/t DAP level for Jalna, sharply up by INR 1,700/t both on weekly basis. As per plants, sentiments have turned optimistic. The reason behind this is a supply shortage of scrap due to lockdown restrictions.
Indian rebar prices remain supportive, trades slow down: Induction grade rebar prices remained supportive in most of the major markets in India. Production cut by mills due to shortage of Oxygen supply and higher cost of billet propelled the prices. Manufacturers, in some locations also made slight adjustments in the discount offer as per market requirement. However, demand and trade activities are still dull in the spot market.
According to SteelMint’s assessment the induction furnace (IF) grade rebar price in Mumbai stands at INR 49,000/t exw, down by INR 100/t w-o-w.
SteelMint’s benchmark sponge iron (P-DRI) price dropped sharply by INR 500/t w-o-w to INR 28,750/t ($388), exw Raipur, Central India.
Outlook: Market participants expect offers to move up further in the near term on limited offers. Increased freight rates and tighter domestic scrap availability on liquid oxygen supply constraints will be the key factors.
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