India: Imported scrap trade improves on rising semi-finished prices

The Indian imported scrap market reported active trade deals since the past few days, owing to a domestic scrap purchase price hike. Domestic scrap prices rallied on prevailing robust sentiments, and increasing prices for substitute material like sponge iron, supported by high coal prices.

On the other hand, the downstream market picked up momentum as transactions supported the price hike.

Recent deals and offers

• A decent quantity of South Africa origin HMS 1&2 (80:20) have been booked at $480/t CFR levels. While the offers for the same origin were heard at $490/t CFR levels.
• Various deals of UAE-origin HMS 1 were at $470-475/t CFR basis towards mid-week and then at $485/t CFR Nhava Sheva.
• West Africa HMS 1&2 (80:20) are being traded at $465-470/t CFR levels. Many deals were heard to have been concluded at these levels, sources informed to SteeMint.
• Indicative shredded offers were heard at $512-515/t CFR Nhava Sheva.
• Jalna-based IF mills have booked around 25,000 t of imported mixed scrap at $450-470/t CFR from Dubai and Europe, sources informed SteelMint.

Domestic scrap offers up on improved demand: Domestic scrap prices increased at most locations in India, as assessed by SteelMint. Improving fuel prices lifted sponge iron prices which ultimately underpinned semi-finished steel values amid rising buying enquiries in the finished steel segment. So, overall positive steel sentiments supported scrap prices. The near-term outlook is likely to remain positive, trade participants informed.

SteelMint’s assessment for HMS was recorded at INR 36,300/t DAP Mumbai, up by INR 1,400/t, w-o-w, while prices for Jalna are also at INR 36,100/t DAP, up by INR 1,800/t, w-o-w.

In contrast, amid higher coal prices, suppliers raised offers significantly. However, the buyers seemed to have turned cautious due to a sharp surge in prices. SteelMint’s assessment for Raipur sponge P-DRI (FeM 80%) rose by INR 3,700/t to INR 34,000/t exw.

India’s IF-route rebar prices up: Increasing semi-finished steel prices and improvement in transactions of rebar steel in the spot market allowed the manufacturers to increase offers. Prices are expected to remain supported owing to higher raw material costs, SteelMint notes.
As per SteelMint’s assessment, induction furnace (IF, Fe 500) re-bar prices in Mumbai stand at INR 49,300/t exw, up by $2,800/t w-o-w.