India: Imported scrap trade remains slow amid volatile market sentiments

Imported scrap offers witnessed an uptrend over the last few weeks yet the domestic market remained volatile as prices witnessed a mixed trend this week. Meanwhile, limited trade were heard in the market on disparity in bids and offers. The domestic market has slowed down amidst festive mood ahead of Holi.

In addition, markets in neighbouring Pakistan and Bangladesh, too, have slowed down amidst limited demand from end-users ahead of the holy Ramadan month. On the other hand, major scrap importer Turkey remained active in booking fresh slots at high prices.

“Global suppliers are first of all interested to trade mostly bulk cargoes to Turkey. Then they might consider container sales”, said a scrap trader.

Fresh offers 

• UK-origin shredded is being quoted at $650/t CFR levels, increasing significantly by $10/t w-o-w. Small quantities continue to be booked from a short sea distance.
• Considering the limited number of sellers in the UAE market, offers for HMS 1&2 (80:20) and HMS 1 are being quoted at $575/t CFR and $560-565/t CFR respectively.
• West African HMS 1&2 (80:20) is available at $560/t CFR levels.

Buyers expect that chances of prices falling this month are slim, while the domestic market is likely to fall further as finished sales slow down, SteelMint learnt.

Domestic market overview

• Domestic scrap prices fall on dull demand: Melting scrap prices witnessed a sharp downward correction across regions following a continuous decline in substitute sponge iron and semi-finished steel prices. Some buyers moved to the sidelines anticipating a further price fall in prices in the coming days, sources informed. HMS (80:20) prices slipped INR 5,100/t w-o-w to INR 41,900/t ($553/t) DAP Mumbai.
• Rebar and sponge iron sales subdued: Amid lack of buying enquiries and lower transactions in the spot market, sponge iron and billet prices fell drastically. Buyers are not showing interest in purchasing material at high prices. However, manufacturers are offering discounts as per previous booking orders and payment terms varying across regions. Domestic IF rebar prices stand at INR 67,600/t ($892/t) exw Mumbai, dipping by INR 4,400/t w-o-w.

Meanwhile, pellet-based DRI (P-DRI, FeM 80%) prices decreased by INR 3,100/t w-o-w to INR 40,400/t ($533/t) exw Raipur.

The mills seem to be waiting for clarity on the global scrap outlook as well as the Indian steel market before placing fresh orders.