Imported scrap trade in India has slightly improved after seeing limited deals in the past few weeks. Imported scrap offers to India have moved up significantly by around $20/t against the prices reported by SteelMint on 1 Jun’21. With the government allowing the supply of oxygen to certain industries on a “temporary basis”, inquiries for scrap purchases have picked up.
According to the ministry, the industries that made the requests included continuous process industries/plants such as furnaces, refineries, steel, aluminum, copper processing plants, etc which require a continuous power supply, as well as infrastructure entities.
“Prices have started looking up, but so far Indian buyers are yet to book material. We will get clarity on the market after 15 June, once mills start normalising operations,” said a scrap trader.
- SteelMint’s assessment for UK/Europe-origin containerised shredded scrap stands at $515-520/tonne (t) CFR Nhava Sheva, increasing considerably by $10-20/t week-on-week (w-o-w).
- A large Indian steel mill booked around 1,500 t of shredded scrap in containers recently on high seas earlier this week, as per SteelMint reports. The deal was concluded for UK/Europe-origin shredded scrap at $510/t, CFR Nhava Sheva, sources confirmed.
- Fresh offers for UAE-origin HMS 1 are now at $480-485/t levels and HMS 1&2 (80:20) at $475-480/t CFR levels, registering a sharp hike of around $20/t w-o-w. Few deals were also heard at quoted offers.
- A few deals for heavy melting scrap (HMS) of Kuwait origin were also heard to have been concluded earlier this week at $475/t, CFR India.
Domestic scrap prices lift on robust steel sentiments
Domestic scrap prices moved up by up to INR 900/t against last week, as rising iron ore prices pushed up sponge iron and semi-finished steel prices, as per SteelMint reports. However, other scrap-dependent markets were upbeat. Prices in the near term may witness minor changes, as per sources. SteelMint’s assessment for HMS in western India is at INR 34,900/t DAP Mumbai, up by INR 700/t w-o-w, and the same is at INR 34,600/t DAP for Jalna, up by INR 900/t w-o-w.
IF rebar finds support from higher raw material prices
IF-grade rebar prices rose by INR 400/t w-o-w on a sharp hike in raw material costs and a marginal recovery in buying interest. However, spot demand is still lacking due to lockdown restrictions in many states. Minor price fluctuations can be expected in the coming days depending on buying inquiries and semi-finished steel prices.
According to SteelMint’s assessment, induction furnace (IF) grade rebar prices in Mumbai stand at INR 48,000/t exw, up significantly by INR 400/t w-o-w.
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