India: Imported scrap trade dull ahead of festive season, outlook positive

The imported scrap trade into India has slowed down of late after witnessing active transactions over the last two weeks. With domestic scrap, sponge iron and billets prices declining in the second half of the week, imported scrap trade activities also weakened a bit.

Recent offers

• No firm deals for shredded scrap were heard recently. The last deal was concluded at $525/tonne (t) CFR Nhava Sheva earlier this week. Suppliers remained active in other South Asian markets due to higher price acceptability. SteelMint’s bi-weekly assessment for shredded scrap of UK/EU-origin stands at $530-535/t CFR Port Qasim, with 5,000 t of confirmed deals.
• UAE-origin HMS 1 is being offered at $490/t CFR Nhava Sheva, increasing significantly by around $20/t w-o-w.
• HMS offers from South Africa and West Africa were heard at around $510/t and $490/t CFR levels, Nhava Sheva.

Domestic scrap,sponge prices volatile: Domestic scrap and sponge iron prices saw an uptick in most markets due to improving sponge iron and semi-finished steel prices. However, a minor correction is expected in the near term, trade participants informed. SteelMint’s assessment for HMS was recorded at INR 36,600/t DAP Mumbai, up by INR 300/t, w-o-w, while prices for Jalna are at INR 36,300/t DAP, up by INR 200/t, w-o-w.

SteelMint’s domestic steel scrap index (end-cutting) declined considerably by INR 1,500/t w-o-w to INR 41,000/t DAP Mandi Gobindgarh.

Meanwhile, prices fell on lower bids and low demand for sponge iron. As per SteelMint’s assessment, prices of Raipur sponge P-DRI (FeM 80%) dropped by INR 700/t w-o-w to INR 33,300/t exw.

IF re-bar prices volatile: Rebar trade and demand have been impacted by higher prices, which is forcing sellers to lower offers. Manufacturers kept prices stable, owing to adequate prior bookings. Prices are expected to fluctuate slightly depending on billet price movements. As per SteelMint’s assessment, induction furnace (IF, Fe 500) re-bar prices in Mumbai stand at INR 50,500/t exw, up by INR 1,200/t w-o-w.

Outlook
Market participants expect imported scrap trade to resume from next week onwards on active demand and peak season ahead.